Jet Airways, the Indian airline in which Etihad Airways holds a 24 percent stake, has confirmed its return to profit in the most recent financial year, in the latest boost to the Abu Dhabi carrier’s equity partnership strategy.
The airline reported profits of $185 million in its 2016 financial year, which ended on 31 March, compared to a loss of $345 million the year before.
Revenue rose 5.9 percent to $3.4 billion during the same period.
During the final quarter, Jet reported a net profit of $63 million, compared to a loss of $291 million in the same quarter a year before. It is the fourth consecutive quarter in which India’s second-largest airline has been profitable.
Revenue during the final quarter increased by 3.1 percent to $694 million.
Over the year as a whole, Jet carried 14.8 percent more passengers, reaching 25.8 million.
The airline also saw its codeshare traffic boosted by its Etihad’s partnership strategy, which has seen the Abu Dhabi flag-carrier buy stakes in seven different airlines around the world in recent years.
Overall codeshare traffic rose 21 percent in the quarter, year on year, while codeshare traffic with Etihad and its partner airlines rose by 45 percent during the same period.
Together, Etihad and Jet now offer more flights to and from India than any other airline.
“The return to profitability is a result of the effective partnership between Jet Airways and Etihad Airways,” said James Hogan, vice chairman of Jet and president and CEO of Etihad Aviation Group, in a press statement.
“Between the two airlines, we have been able to provide a compelling option of wider combined network and exceptional guest experience for travellers to and from India.”
The Jet results reflects recent figures posted by other airlines part-owned by Etihad.
In May, Alitalia announced that its losses had been cut by two-thirds last year as the Italian airline’s plan to return to profit in 2017 remains on track.
The European carrier, which is undergoing an extensive restructuring programme, pared its losses in 2014 by 381 million euros to post a loss of 199.1 million euros.
At around the same time, Air Seychelles reported a net profit of $2.1 million for 2015, marking its fourth straight year of profitability in a row.
In late April, Etihad itself posted a record net profit of $103 million for 2015.
The airline said its partnership strategy had resulted in an additional $1.4 billion in revenues in 2015, a 22 percent rise on the previous year, as well as adding 5 million passengers.
Etihad said the policy had enabled it to expand connectivity, reduce costs by creating economies of scale, and generate additional revenue.
Follow us on
