Jet Airways reports INR 58 cr net profit in Q1 FY18

jet-airways

Jet Airways Group has announced its results for the first quarter of FY 18, reporting a net profit of INR 58 crore for the period. 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 per cent 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 per cent during Q1 FY18, reversing an otherwise declining trend witnessed in the last few quarters.

Naresh Goyal, chairman, Jet Airways, said, “Jet Airways took several focused measures to revitalise 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.”

During the period, Jet Airways’ board also approved the appointment of Vinay Dube as the airline’s CEO. Jet Airways continued expanding its cooperation with its codeshare partners and the overall number of codeshare guests and revenues for the first quarter of FY18 grew 22 per cent and 76 per cent 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 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.

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