Jet Airways Q2 profit rises 25% to Rs 88 crore

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Updated: October 29, 2015 12:45:37 AM

Mumbai-based full-service carrier Jet Airways on Wednesday missed street estimates by reporting a 25.45% year-on-year increase in its standalone net profit at Rs 87.60 crore during the July-September quarter on the back of substantial reduction in the air turbine fuel (ATF) costs.

Mumbai-based full-service carrier Jet Airways on Wednesday missed street estimates by reporting a 25.45% year-on-year increase in its standalone net profit at Rs 87.60 crore during the July-September quarter on the back of substantial reduction in the air turbine fuel (ATF) costs. Income from operations during the period was also below estimates, up 10.28% at R4,855.56 crore.

The airline’s expenses on fuel during the quarter decreased by 27.59% y-o-y to R1,336.61 crore due to softening crude oil prices in the international market.

Fuel expenses constitute between 50%-60% of the airlines’ total operational expenses, as a result Jet Airways managed to register an operating profit of R354.71 crore compared to a negative Ebitda of R73.08 crore in the corresponding quarter of the previous fiscal.

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Naresh Goyal, chairman, Jet Airways said, “The Indian domestic aviation market is witnessing robust growth with traffic growing by 20%. Jet Airways is committed to contributing to this growth by providing enhanced connectivity and a full-service travel experience to our guests. Our financial performance in the second quarter clearly demonstrates that our efforts are showing positive results.” Jet Airways’ revenue from domestic operations grew by 20.16% y-o-y to R2,018.63 crore.

Revenue from international operations increased 4.09 % y-o-y to R3239.34 crore. Post equity infusion by Etihad Airways, Jet Airways has increased its flights to the international routes which have contributed to the increased revenues from its international operations.

Currently Jet airways has 19.2% market share in the domestic aviation market and carried 12.78 lakh passengers in September. The company has increased it frequency of daily flights with the metropolitan cities and have added new destinations like Varanasi in its winter schedule.

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