Efficiency, cost cuts drive Jet Airways profits

Jet Airways announced that it had earned profits for a fifth successive quarter ending June 30, 2016.

India's Jet Airways announced that it had earned profits for a fifth successive quarter ending June 30, 2016, on increased efficiency and reduction in cost, including non-fuel expenses.

A consistent financial performance has enabled Jet Airways to reduce its debt by $53 million during Q1 of FY 17.

Cost per available seat kilometre, excluding fuel, dropped by 1.2 per cent to US cents 4.77 in Q1 FY 17.

The company reported a net profit of $19 million in Q1 of FY17 compared to $36 million in the corresponding period of the previous year.

Naresh Goyal, chairman of Jet Airways, said: "Jet Airways has strengthened its core operations and achieved better capacity utilisation and greater efficiency. We have been able to report lower non-fuel cost in spite of inflationary increases and weakening of the Indian rupee against the US dollar by almost six per cent."

He added that due to the competitive environment, industry yields were under pressure in Q1 and the trend is expected to continue.

"Our strategic partnership with Etihad Airways continues to strengthen. In Q1, codeshare traffic delivered by Etihad Airways and Etihad Airways Partner airlines to Jet Airways grew by 41 per cent."

James Hogan, vice-chairman of Jet Airways and president and CEO of Etihad Aviation Group, said: "Jet Airways is a key player in the Indian aviation market offering a full service product and a robust network. We will continue to strengthen the partnership between Jet Airways and Etihad Airways by driving further synergies, along with other Etihad Airways Partner airlines.

"Jet Airways continues to grow its traffic over the Abu Dhabi gateway. Together, we are the largest combined scheduled operator of flights to and from India with a 20 per cent market share."

Overall, codeshare traffic for the first quarter of FY 17 grew 13 per cent to 551,859 passengers, Hogan informed.

A wider network of codeshares now enables Jet Airways to offer enhanced global connectivity and has helped drive an increase in passengers.

Jet Airways will soon launch Fare Choices, a flexible fare structure allowing guests more choice and freedom when booking flights.

Jet Airways, together with airberlin, Air Serbia, Air Seychelles, Alitalia, Etihad Airways, Etihad Regional operated by Darwin Airline, and NIKI, participates in Etihad Airways Partners.

- haseeb@khaleejtimes.com