Jet Airways posts $34m profit, up 118%
ATP- Arab tourism portal- Jet Airways Group has posted 226.4 crores Indian rupees ($34.9 million) in profit for the first quarter ending June 30, compared to a loss of 258 crores Indian rupees during the same period last year.
The 118 per cent improvement in performance provides evidence of the growing momentum of its three-year turnaround programme, said a statement.Naresh Goyal, chairman of Jet Airways, said: "Our performance in the first quarter of this financial year demonstrates once again that the measures we are taking to bring the business back to profitability are having the desired result.
“All the major key performance indicators have shown progress as we continue to focus on customer satisfaction, network enhancement and improvement through efficiency.”
Compared to the same quarter of the previous financial year, Jet Airways’ financial performance improved by 484.4 crores rupees or 187.8 per cent.The airline’s total revenue (combined) for the period increase 11 per cent to 5,658 crore Indian rupees from 5,097 crore Indian rupees.
The passenger revenues rose 10.4 per cent to 4,707 crore Indian rupees from 4,262 crore Indian rupees.Other contributing factors included synergies with partner carriers, the implementation of a consistent, full service, single brand strategy across the entire domestic airline operation and an increased focus on premium traffic.
Meanwhile, Jet’s domestic capacity grew 13.3 per cent and passenger traffic increased by 25.4 per cent, significantly exceeding local industry growth.Cramer Ball, Jet Airways’ chief executive officer, said: "Despite the increasingly competitive domestic landscape driven by aggressive new market entrants, our market share in India went up by 1.1 percentage points to 21.9 per cent.
This means that one in every five domestic passengers flew on Jet Airways.“Our customers have embraced the changes we have made.
This is a strong endorsement of our single brand full service product complemented by the ‘Guest First’ approach to service and hospitality, and validates our considerable investment in product enhancements in the air and on the ground.
”Jet Airways also recorded a 12.4 per cent growth in international passenger traffic during the first quarter.Further augmenting its global connectivity, the airline added three new codeshare partners – airberlin, Air Seychelles and Bangkok Airways – taking the total number of codeshare partners to 21.
The quarter witnessed a significant 51% growth in overall codeshare traffic while at the same time the codeshare traffic by strategic partner Etihad Airways and its partner airlines grew by 181 per cent.
“The competitive and structural challenges in the Indian aviation market continue to put pressure on our yields and costs.
In addressing these, we continue to focus on leveraging the commercial and operational synergies through our partnership with Etihad Airways," said Ball.