Jet Airways reports net profit of INR 71 crores (cr) and reduces non-fuel CASK by 5.3% in line with outlined estimates
Jet Airways Group Q2 (FY’18) highlights:
Total Revenues increase to INR 5,952 cr in Q2 FY’17
Passenger revenue increases to INR 5,147 cr against Q2 FY’17
Available Seat Kilometers (ASK) increases by 7.7% to 14 billion, over Q2 FY’17
Passengers carried increase by 7.7% to 7.29 million, against Q2 FY’17
Utilisation of Boeing737 fleet increases to 13.45 hours against Q2 FY’17
CASK-excluding fuel reduces by 5.3% to INR 3.07 against 3.24 in Q2 FY’17
Revenue from codeshare partners increased by 8% compared to Q2 FY’17
EBITDAR of INR 1,025 cr in Q2 FY’18 against INR 1,531 cr in Q2 FY’17
Net debt reduced by INR 194 cr
The Jet Airways Group continued its focus of delivering a well-differentiated guest experience as well as improvements in key business performance parameters. The Group reported a net profit of INR 71 crores for the second quarter of FY’18 – its tenth successive profitable quarter, backed by growth in capacity, revenues as well as accompanying reduction in non-fuel costs. During the quarter, Jet Airways also successfully reduced its net debt by INR 194 cr.
Despite an increase in the Brent fuel price, the overall CASK dropped due to the airline’s ongoing efforts to improve operational efficiencies throughout its business. CASK-excluding fuel fell by 5.3 percent to INR 3.07 against INR 3.24 in Q2 FY’17 – in line with Jet Airways’ plan to achieve a 12-15 percent reduction in non-fuel CASK over the next 8-10 quarters.
Jet Airways continued to take steps to strengthen its domestic network footprint by augmenting services between emerging cities such as Jaipur, Lucknow, Chandigarh, Dehradun, Udaipur and Indore during the quarter, in order to facilitate the rising demand as well as travel aspirations of guests from these fast-growing cities.
Vinay Dube, Chief Executive Officer, Jet Airways, said,
“The weak demand in the Gulf continues, whilst low fares as well as yields in the domestic market have limited the ability to offset the increase in fuel prices. In line with our commitment to offer guests a superior experience, we continue to grow our domestic presence while keeping a tight control on costs, reflecting in the reduction in non-fuel CASK.
Jet Airways also derived significant operational and business advantages via synergies with its strategic partner – Etihad Airways, as well as other codeshare partnerships, carrying a growing and significant number of global travellers across its 64 destination network, including gateways at Abu Dhabi, Amsterdam, Paris and London.”
The airline’s focus in connecting global travellers as a result of its cooperation with codeshare partners such as Air France-KLM, Virgin Atlantic and Delta Air Lines, drew robust dividends and the airline’s percentage of alliance revenues went up by 8% during the recent Quarter.
In the same period, India’s premier international airline also forged an industry-first partnership with Airbnb – the world’s leading community-driven hospitality company allowing it to offer a wide spectrum of rapidly growing, global hospitality choices to guests from India and establishing a deeper connect with the new-age Indian traveller, who is increasingly seeking unique and interesting experiences while travelling in India as abroad. The partnership strengthens the portfolio of choices the airline currently offers its guests with a well differentiated and highly regarded offering.
Complementing its efforts to deliver exceptional value to guests, Jet Airways also redefined its classical in-flight duty free offering ‘JetBoutique’ by taking it online and introducing a unique, pre-order facility. In the process, the airline became the first Indian carrier to offer such as service, helping guests save time at the airport, aside from the enhancing the convenience of online shopping.
Guests using the service can now enjoy the luxury of shopping online for their favourite international, lifestyle brands from partner duty free stores at their convenience and have their purchases delivered on-board during their travel. In fact, those with confirmed bookings on select international flights can pre-book their orders of inflight duty free products at Jet Airways’ website – www.jetairways.com for delivery onboard their flights.