Jet Airways swings back to profit, net at Rs.85 crore
During the quarter, Jet’s net sales rose 6.6% to R3,941.39 crore from R3,696.26 crore in the same quarter last year.
Apart from better yields, some key changes in the network, including the dropping of some unprofitable routes, helped the airline reduce its fuel costs. Year-on-year fuel costs came down 3.6% to R1,688.53 crore from R1,753.34 crore in the same quarter a year ago. Fuel cost as a percentage of net sales stood at around 43% for the third quarter and in the same quarter last year it stood at 47%.
“All of our efforts on revenues, costs and network side have resulted in turning around the airline’s operations,” said Nikos Kardassis, CEO, Jet Airways (India). “The combined impact of higher yields and lower costs have resulted in significantly lowering the breakeven seat factor levels in the business.” Jet, however, did not comment on the possible stake sale deal with Etihad Airways of Abu Dhabi. It was expected to sign the term sheet on Friday but last minute negotiations over the valuation of Jet’s shares delayed the deal.
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