International Finance

Jet Airways reports profit in the first quarter of FY’18

Reports profit of INR 58 cr

Jet Airways Group announced its results for the first Quarter of FY’18, reported a net profit of INR 58 crores for the period.

The Group’s focus has been to deliver continuous improvement in key business performance parameters, including growth in passenger revenues as well as reduction in non-fuel costs.

Despite being adversely impacted by an increase in the Brent fuel price during the Quarter that led to an increase in Total Cost per ASK (CASK), the airline continued its focus to ensure operational efficiencies across its entire business, leading to a further reduction in the Cost per Available Seat Kilometre (CASK) excluding fuel, which dropped by 2.5% to INR 3.22 in Q1 FY18 compared to INR 3.30 in Q1 FY17. Results for the Quarter were also supported by a slight increase in domestic average fares, which grew by 3.4% during Q1 FY’18, reversing an otherwise declining trend witnessed in the last few Quarters.

Naresh Goyal, Chairman Jet Airways, said, “Jet Airways took several focused measures to revitalize its business and realise greater efficiencies in spite of weakening international demand, especially from the Gulf. Low fares, together with addition of capacity in the domestic market, continues to put pressure on yields. We have taken definite steps to strengthen our key performance indicators, including increasing our domestic footprint by enhancing connectivity and choice for guests not just between our hubs and metros, but also between emerging cities.

On the international side, the Gulf situation notwithstanding, our synergies with our strategic and equity partner – Etihad Airways, continue to grow on a healthy trajectory. Our partnership continues to deliver incremental value to both partners not only from strategic and operational perspectives, but also in commercial terms.”

During the period, Jet Airways’ Board also approved the appointment of Vinay Dube as the airline’s Chief Executive Officer – a step that will strengthen the company immensely.

Jet Airways continued expanding its cooperation with its codeshare partners and the overall number of codeshare guests and revenues for the first Quarter of FY’18 grew 22% and 76% respectively.

The airline announced its plans to launch three new international flights wef from October 29, 2017, to Amsterdam, Paris and London, from Bengaluru, Chennai and Mumbai respectively. The new flights from Bengaluru and Chennai are especially significant as they will enable the airline to connect guests in Southern India with Europe and North America for the very first time with non-stop and one-stop flights in codeshare with KLM Royal Dutch Airlines and Delta Air Lines as well as with Air France and Delta Air Lines respectively.

Strengthening its codeshares towards the West, Jet Airways signed a MoU for codeshare with Aeromexico to promote travel between India and Mexico. Towards the East, the airline signed another arrangement with China Eastern Airlines for codeshare services to Shanghai and Kuoming, further enhancing connectivity for its guests.

In line with its growth strategy and focus to promote an indigenous pool of pilots, Jet Airways also launched a new Commercial Pilot License (CPL) cadet pilot training programme in partnership with world leader CEA. The programme aims at creating more than 380 professional pilots over the next five years and will help the airline create fresh batches of highly skilled cockpit crew to augment its in-house talent base.

In another first, Jet Airways was named as “India’s Best Airline” at TripAdvisor’s Traveller’s Choice® Awards 2017, representing the voice of global travellers.

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