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Sun 13 Nov 2016 11:32 AM

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Jet Airways posts $13m profit in Q2 despite pricing pressure

Etihad-backed airline said improvements in operational performance have helped Jet Airways enjoy strong growth

Jet Airways posts $13m profit in Q2 despite pricing pressure

Jet Airways on Saturday said net profit rose of 2.5 percent to $13 million for second quarter 2016 compared to $12.67 million a year earlier, despite a “lean” quarter and domestic yields being under pressure.

The airline’s total revenue for the second quarter ending September 30, increased by 3.2 percent to $850 million from $842 million. Passenger revenues rose by 2.2 percent to $716 million from $716 million.

Jet Airways deployed wide-body Boeing 777s between Mumbai, Dubai and Singapore, enabling the airline to increase it capacity to carry 6.77 million passengers.

The second quarter witnessed a growth of 15 percent in overall codeshare traffic, including a growth of 32 percent between Etihad Airways and its partner airlines.

Aircraft utilisation for Boeing 737 fleet increased by 2.9 percent to 13.3 hours from 12.9 hours, while overall fleet utilisation increased to 12.7 hours.

Naresh Goyal, chairman, Jet Airways said: “Improvements in operational performance have helped Jet Airways participate in the strong growth being witnessed in the Indian aviation market.

“Our guests form the core of our business and we continue to evolve to offer them an enhanced experience and additional choices for travel. That includes providing seamless global and domestic connectivity as well as freedom and flexibility to plan their travel via our unique ‘fare choices’ initiative. We have also ensured that our fleet deployment and our alliances and codeshare relationships are aligned to enrich the experience of guests.”

James Hogan, vice chairman, Jet Airways and president and chief executive officer, Etihad Aviation Group, said: “Our continued collaboration has supported ongoing improvement in Jet Airways performance, despite the ongoing pressure on yields. We have made robust progress in our common aim to leverage mutual synergies to enhance the value for our guests and the business.

“Growth in passenger numbers and aircraft utilisation contributed significantly to our performance during the second quarter, together with maintaining a broadly flat non-fuel cost, despite inflation.”

Jet, along with Etihad, now offer more flights to and from India, than any other airline, the statement said.

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