Jet Airways, the country's second largest full service carrier, on Friday reported a 23.42% year-on-year increase in standalone net profit at Rs 108.11 crore for the quarter ended September 30 on the back of a substantial growth in other income.
Jet Airways, the country’s second largest full service carrier, on Friday reported a 23.42% year-on-year increase in standalone net profit at R108.11 crore for the quarter ended September 30 on the back of a substantial growth in other income.
The second quarter is generally regarded a lean quarter for airline as leisure travel stops due to monsoon. Revenues during the quarter increased by only 1.33% y-o-y to R4,920.55 crore due to nominal or modest increase in revenues from international and national networks. Jet Airways earns around 55-60% of its revenues from its International network.
During the quarter, the Mumbai-based airline experienced 36.6% y-o-y increase in employee cost, 5.89% y-o-y increase in aircraft rentals and 8.40% y-o-y increase in other expenses due to the fluctuation in the valuation of the Indian rupee against the dollar.
As a result, the standalone operating profit or the EBITDAR of the airline decreased by 1.52% y-o-y to R868 crore.
“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,” said Naresh Goyal, chairman, Jet Airways.
Passengers carried increased by 6.3% to 6.77 million in Q2 FY17 from 6.37 million in Q2 FY16. While available seat kilometres increased 5.7% to 13.23 billion ASKs primarily due to deployment of wide body aircraft.
The quarter also witnessed a growth of 15% in overall codeshare traffic, including a growth of 32% between Etihad Airways and its partner airlines. Jet Airways, together with Etihad Airways now offer more flights to and from India, than any other airline.
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.”
At a group level, Jet Airways reported R85 crore as net profit while revenues stood at R5,682 crore.