India's second largest airline Jet Airways today reported a net profit of Rs 165 crore for Q3 FY18 as against Rs 305 crore for the same period in FY17.
India’s second largest airline Jet Airways today reported a net profit of Rs 165 crore for Q3 FY18 as against Rs 305 crore for the same period in FY17. But the airline had declared a one time income of Rs 128 crores from sale and lease back of aircraft in Q3 of FY17 as gainst Rs 8.36 crore in Q3FY18. Adjusted for this, profit would have declined 12% against the unadjusted dip of 45%. The airline however performed much better on other operating and business parameters and flew more passengers and also managed to reign in costs despite an increase in fuel prices it also leveraged its partnership with international carries and expanded its international footprint.
It increased its revenues by 10.2 % to Rs 6412 crores for Q3 FY18 as against Rs 5817 crore for the same period in FY17. With an increase in demand for air travel in India and Jet’s increased capacity its Available Seat Kilometer (ASK) increased by 8.7 % to 14.98 billion ASKs and it impacted its passengers revenue positively as they grew by 11.7 % to Rs 5,541 crore over FY17. Jet added five Boeing aircraft to its fleet and flew 13.4 % more or 7.7 million passengers in Q3FY18 as compared to the same period in FY17, its load factors went up to 84% for Q3 FY18 as compared to 79.6% in Q3FY17, an increase of more than four percentage points.
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In line with the carrier’s recent announcement of achieving a 12-15 percent reduction in non-fuel CASK (Cost per Available Seat Kilometer) over the next couple of years the led to progressive reduction in non-fuel costs and its CASK-excluding fuel decreased by 2.6% to Rs 3.02 against Rs 3.10 in Q3 FY17. “Notwithstanding our challenges of low domestic fares and the rise in fuel prices by almost 20%, we expanded our B737 fleet as well as overall capacity by 8.7%, deepening our presence on key domestic and international routes,” Vinay Dube, Chief Executive Officer, Jet Airways said.