Aided by softening jet fuel prices, easing operating conditions and improvement in passenger load factor, Jet Airways clawed back into profitable zone in the October-December 2014 quarter after posting losses in the seven preceding quarters. For the third quarter ended December 31, the company reported profit of Rs 3 crore from a loss of Rs 284 crore registered in the same period a year ago.
Aided by softening jet fuel prices, easing operating conditions and improvement in passenger load factor, Jet Airways clawed back into profitable zone in the October-December 2014 quarter after posting losses in the seven preceding quarters. For the third quarter ended December 31, the company reported profit of Rs 3 crore from a loss of Rs 284 crore registered in the same period a year ago.
As per the available data, airline's total revenue (combined) for the third quarter of FY2015 increased by 9% to Rs 5,436 crore from Rs 4,990 crore a year ago. Passenger revenue during the period under review rose by 8.8% to Rs 4,621 crore from Rs 4,248 crore, while cargo revenue rose 5.3% to Rs 382 crore as against Rs 363 crore. Also, the combined passenger load factor in Q3 increased by 5.2 % to 82.1, compared with 76.9 in Q3 of FY14. The company's Ebitda increased to Rs 171 crore ($28m) in as against Rs 10 crore ($2m).
The management attributed the improvement in earnings to the result of optimising of the network, having tighter domestic and international network integration, synergies with partner carriers, implementing a consistent, full service, single brand strategy across the entire domestic airline operation and increased focus on premiere and premium traffic.
Cramer Ball, CEO of Jet Airways said, "At the beginning of FY15 we outlined a three-year turnaround plan to get Jet Airways back to profitability. Today our business performance provides hard evidence that we are turning the business around and are on track to achieve our targets".
The aviation industry experts and insiders suggested that the improved result at Jet Airways has been on the back of falling fuel prices and other operating conditions. Experts also expect the results to improve further in the coming quarter. Ball, who has been tasked by the airline promoters to make a turnaround, stated "while the global and local operating conditions have eased, we only expect to see the real impact of the lower fuel price in the next quarter."
Jet Airways currently has a fleet of 117 aircraft. Last year, leading gulf carrier Etihad Airways bought stake in the company.
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