The Naresh Goyal-led Jet Airways on Saturday reported a stand-alone net profit of R467 crore for the quarter ending December 31, 2015, a multi-fold growth from R63 crore a year ago, driven by higher traffic and lower fuel costs. For the second-largest airline, this is the third consecutive quarter of profits and a record in recent years. The carrier said the robust numbers further validate its turnaround plan, which was unveiled after its part equity sale to UAE’s Etihad in 2013.
This turnaround can be attributed to the steep decrease in airline turbine fuel (ATF) costs, which constitute around 40%-50% of the operational expenses of any airline. The airline’s fuel-related expenses decreased by 27% y-o-y to R1,235.36 crore as compared to R1,701.07 crore in the corresponding fiscal.
Chairman Naresh Goyal said Jet is rightly placed to participate in the fast growth of India’s aviation sector. “The record profit and overall strong financial performance in this fiscal is a result of several initiatives undertaken for improving productivity and efficiency,” he said.
With crude prices going down below $30 a barrel in the international market, experts believe airline companies will continue to benefit from this development. Revenue improved R266 crore to R5,702 crore, while passenger revenue rose 4.8% to R4,845 crore, from R4,621 crore.
While domestic capacity went up 14.6%, passenger traffic grew 15%. The international capacity clocked a growth of 2.6%, while growth in passenger traffic stood at 5.1%. The airline said its pre-tax profit (Ebidta) quadrupled to R751 crore during the reporting period.