Jet Airways Records Fifth Consequtive Profitable Quarter

Jet Airways Group has announced its fifth successive profitable quarter for the period ending June 30, 2016 based on continuing improvement in aircraft utilization, increased efficiency and reduction in cost, including non-fuel expenses. 

Consistent financial performance has enabled Jet Airways to further reduce its debt by US$ 53m during Q1 of FY17.

Cost per available seat kilometre (CASK) excluding fuel dropped by 1.2% to US cents 4.77 in Q1 FY17 compared to US cents 5.09 in the corresponding period of the previous year, clearly indicating Jet Airways’ focused approach in achieving operational efficiencies throughout its business. 

The company reported a net profit of US$ 19m in Q1 of FY17 compared to US$ 36m in the corresponding period of the previous year. The net profit of Q1 FY16 included an exceptional item on account of contribution receivable from lessors.

Naresh Goyal, Chairman, Jet Airways, said: “Jet Airways has strengthened its core operations and achieved better capacity utilization and greater efficiency. We have been able to report lower non-fuel cost in spite of inflationary increases and weakening of Indian Rupee against US Dollar by almost 6%. 

“Due to the intense competitive environment, industry yields were under pressure in Q1 and the trend is expected to continue in Q2. 

“At Jet Airways, we continue to focus on our key priorities areas of customer satisfaction, network optimisation and driving operational efficiencies. 

“Our strategic partnership with Etihad Airways continues to strenghten. In Q1, codeshare traffic delivered by Etihad Airways and other Etihad Airways Partner airlines to Jet Airways grew by 41%.

“As a network carrier, we have been able to drive greater integration between domestic and international operations providing enhanced connectivity to our guests throughout the Jet Airways network. 

“Jet Airways remains committed to its endeavor of connecting India to the world as India’s economic growth story gains further momentum.”

James Hogan, Vice Chairman, Jet Airways and President and Chief Executive Officer, Etihad Aviation Group, said: “Jet Airways is a key player in the Indian aviation market offering a full service product and a robust network. 

“We will continue to strengthen the partnership between Jet Airways and Etihad Airways by driving further synergies, along with other Etihad Airways Partner airlines. In a competitive market, we have together created a winning combination of a wider combined network and exceptional guest experience for travellers to and from India.

“Jet Airways continues to grow its traffic over the Abu Dhabi gateway, complementing the Etihad Airways network. Together, we are the largest combined scheduled operator of flights to and from India with a 20 per cent market share. Our robust partnership continues to go from strength is strength.”

Overall codeshare traffic for the first quarter of FY17 grew 13% to 551,859 passengers. A wider network of codeshares now enables Jet Airways to offer significantly enhanced global connectivity and has helped deliver the increase in passenger traffic. 

Jet Airways’ recently introduced daily non-stop operations to Amsterdam from Mumbai, Delhi and Toronto have received very encouraging response with an average seat factor of 84%. To meet the growing demand from business and corporate travellers, Jet Airways will upgrade its flight on the Mumbai-Amsterdam route to a Boeing 777-300 ER with effect from October 30, 2016.

From Amsterdam, Jet Airways offers connections to 30 destinations across Europe and 11 destinations in the United States and Canada through its codeshare partnership with KLM Royal Dutch Airlines and Delta Air Lines. 

During the first quarter of FY17, Jet Airways launched a multi-media campaign themed ‘Get More’ to highlight the significant benefits and additional features offered by Jet Airways as a full service airline. 

Jet Airways is launching Fare Choices, a new flexible fare structure allowing guests more choice and freedom when booking flights. Jet Airways joins a select group of airlines worldwide offering a branded fare structure which offers flexibility and transparency. Fare Choices to be launched on August 17, 2016 is a transparent fare structure offering flexibility and tailored benefits, allowing guests the ability to customise their travel experience according to their needs.