Naresh Goyal-promoted Jet Airways said the airline is on track to meet its 2017 turnaround target as it continues to benefit from cost synergies with its equity partner – Etihad Airways.
"We are on track for a turnaround. We have shown consistency in our results from Q1 to Q2 of this financial year," said Cramer Ball, CEO, Jet Airways, while talking to analysts in an earnings call.
After reporting a profit on a standalone basis in Q2, the airline is hopeful of a strong third quarter on account of the peak season and benefits from the reduced Aviation Turbine Fuel (ATF) costs.
"Crude oil benefits are expected to come in the current quarter (Q3). The quarter is expected to show strength and forward bookings are also looking very encouraging," said Ravichandran Narayan, VP – finance for Jet Airways, during the concall.
The airline, which announced its second quarter results last week, reported a profit for first time since 2012. On a standalone basis, the airline posted a profit of Rs 70 crore, driven by the one-off gain from sale of its frequent flyer business and sale and lease back benefits, compared to a loss of Rs 891 crore in the same period last year. On consolidated basis, Jet has managed to narrow its losses by about 96% to Rs 43 crore in the quarter ended 30 September, as against a whopping net loss of Rs 999 crore in the year-ago period.
"There is a significant focus in driving more efficiencies and cost benefits, which will help in improving our overall heads. We will fly where its commercially more advantageous," said Ball.
The airline also said it would go completely full service effective December 1. It had recently announced its single-brand strategy in order to avoid confusion between its various brands like Jet Airways, Jet Konnect and JetLite.
The airline also said its board has approved a proposal to raise up to $300 million in term-debt by issuing redeemable preference shares, non-convertible bonds or loan from its foreign shareholder Etihad, which had already extended a $150 million soft credit to the carrier when it sold 24% stake to it. After surging 7.77% to Rs 271 in intra-day trade, shares of Jet Airways finally ended at Rs 268.60, up 6.82% on the BSE.
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