Jet Airways Group today announced a second quarter profit of INR 83 crores for the period ending September 30, 2015.
The airline group’s second consecutive profitable quarter in the current financial year and a profitable Q2 after a gap of eight years provides further evidence of the progress in its three-year turnaround programme.
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.”
Compared to Q2 of FY15, Jet Airways’ financial results improved by INR 126 crores in Q2 of FY16. The net profit before taxes is INR 83 crores compared to a net loss of INR 42.8 crores for the same period last year. Jet Group’s total revenue for the second quarter FY16 increased by 8.1 per cent to INR 5,504 crores from INR 5,092 crores. Passenger revenues for Q2 FY16 rose by 9.5 per cent to INR 4,682 crores from INR 4,277 crores.
In Q2 FY16, Jet Group’s domestic capacity grew by 16.6% while passenger numbers grew 34.5% which were much higher than the industry growth. At the same time, in the international business the airline registered a 6.6% growth in capacity and a 9.7% growth in passengers. This improvement is largely the result of optimizing the network to enable tighter integration between domestic and international networks, enhanced synergies with partner carriers and improved operational performance.
Cramer Ball, Chief Executive Officer, Jet Airways said:
“It is encouraging to report a profit in the second quarter, which is traditionally a lean season for the aviation sector. While the robust competition in the Indian aviation sector continues to put pressure on yields, we have continued to make progress by focusing on improving operational efficiency throughout our business. The growth in passengers flown by Jet Airways and the improved aircraft utilization have been significant contributors to the performance in the second quarter.”
During Q2 FY16, Jet Airways further enhanced its global network by expanding its codeshare partnerships with Etihad Airways, South African Airways, airberlin and Virgin Atlantic. The quarter witnessed a significant growth of 29% in overall codeshare traffic, while at the same time the codeshare traffic by strategic partner Etihad Airways and its partner airlines grew by 87%. A record number of passengers took advantage of the choice and convenient connections offered by the combined network.
Jet Airways continues to enhance synergies with strategic partner Etihad Airways and other Etihad Airways Partners. These efforts are aimed at achieving overall benefits across the business and to provide greater connectivity and choice to the guests. The two airlines together now offer more flights to and from India than any other airline, with a 17 per cent share of the country’s booming international air travel market.
To further strengthen its robust domestic network, Jet Airways has launched 19 additional frequencies and eight new flights during the 2015 Winter Schedule.
Mr. Ball said: “In addition to optimizing our network, our programme to deliver a consistent, single brand full service product is also contributing to our competitiveness and improved market share. Our new initiatives have been endorsed by our guests and we will continue to make further investments to enhance customer experience both in-flight and on ground.”
Jet Airways’ recent initiatives including the launch of a new mobile app, the introduction of Seat Select and online booking of excess baggage, are all focused on enabling guests to plan their travel with greater ease and convenience.