Jet Airways Ltd. reported its first quarterly profit, since 2012. Jet Airways was in complete loss, but on Friday it reported its first-time profit in past two years. All the credit goes to the ever increasing fly business, but India’s biggest private airline network continued to lose money in all the other departments.
Jet airways is striving hard to survive and is facing lot of heat while competing with other giants, in a market where fares are decreasing and operating cost is increasing every other day. The company said that their net profit reached 698.2 million rupees in the last three months up to September 30. After that it banked a 3.05 billion rupee gain from its Jet Privilege frequent flyer program.
Excluding the current quarterly sale, Jet Airways, which is aiming a return into profit by 2017, lost 2.35 billion rupees in the very last quarter this year, less than the 8.33 billion it reported a year earlier after operating cost and fuel cost rose. Indian Airways also suffered huge loss by keeping their fares comparatively low to compete in one of the world’s fastest growing market.
Jet airways chief executive, Cramer Ball, said “I am extremely pleased by the progress that is evident across several areas during the reporting quarter. This is keeping with our three-year turnaround plan.” He further added to the context “The operational restructuring initiatives with route and network rationalization are already yielding dividends on the domestic and international network. The organic network expansion, coupled with enhanced global connectivity through alliances and codeshares, has also helped increase international passenger traffic.”
Overall revenue per available seat kilometer (RASK) in this quarter increased by 7.8 per cent to Rs. 4.61 from Rs. 4.61 in the year ago period. While the domestic RASK rose by 18.6% to Rs. 5.14 from Rs. 4.23 indicating that international operations of airlines has strengthened.