Jet Airways reports record net profit, third consecutive quarter of record profit

Jet Airways stated (06-Feb-2016) it reported an improved and record net profit in the Dec-2016 quarter, driven by higher traffic and lower fuel costs. This is the third consecutive quarter of record profit for the carrier. The carrier said the robust numbers further validate its turnaround plan, which was unveiled after 24% equity sale to Etihad Airways in 2013. Chairman Naresh Goyal attributed "the record profit to the overall strong financial performance arising from several initiatives undertaken to improve productivity and efficiency". Jet Airways vice-chairman, and president and chief executive of Etihad Airways James Hogan said "we are very satisfied with the operating and financial performance of Jet that has resulted in record profits. We remain committed to providing solid support and driving further synergies between the two partners". Outgoing CEO Cramer Ball said: "Our strong operational performance resulting in record profit demonstrates the progress we continue to make in our turnaround plan. The key achievements during Q3 have been lower cost per ASK excluding fuel and higher aircraft utilisation resulting in additional capacity equivalent of nine 737 aircraft without any addition to the fleet." Mr Ball said: "The competitive and structural challenges in the Indian aviation market continue to put pressure on our yields. In addressing these, we will focus on cost reduction." The airline said its domestic ASKM grew 24% even without any addition of new aircraft. Aircraft utilisation for the Boeing 737 fleet continues to rise and reached 13.07 hours in the reporting period. A focus on cost reduction initiatives has resulted in the non-fuel cost per ASK coming down by 4.6% while total cost per ASK declined 15%. [more - original PR]