Jet Airways on Friday posted a net profit of Rs 3.52 crore for the first quarter of this financial year, compared to a loss of Rs 225.33 crore in the year-ago period.
The country's largest airline in terms of market share attributed the performance to improvement in global business and leisure travel, improved On Time Performance and strategic marketing initiatives implemented during the previous quarters.
This is the third successive quarter that the airline has been in the black, having posted a net profit of Rs 100 crore in the third quarter and Rs 58.6 crore in the fourth quarter of the previous financial year.
Jet Airways and JetLite, its fully-owned subsidiary, together have a market share of 26.5 per cent, according to figures released by the Directorate General of Civil Aviation.
Income rose 23.6 per cent to Rs 2,965.01 crore, compared to Rs 2,398.15 crore in the same period last year. Expenditure went up to Rs 2,789.10 crore from Rs 2,435.73 crore, a rise of 14.50 per cent.
The expenditure shot up due to a 56.22 per cent rise in fuel expenses at Rs 995.92 crore, compared to Rs 637.49 crore during the same quarter last year.
However, the airline's debt still remains a cause for concern. As of May, Jet had a debt of about Rs 14,000 crore, of which aircraft-related dollar-denominated debt was estimated to be about Rs 10,000 crore. The airline has to repay Rs 1,000 crore annually for the next three years. The interest and finance charges of the carrier were Rs. 274.47 crore for the said quarter.
"Nine consecutive months of growth underline the fact that Jet Airways, has been able to capitalise on the resurgent trend in domestic and global air traffic. This growth has been achieved through integration in operational efficiencies, network planning, strategic code shares, distinctive marketing initiatives and improved reliability and On Time Performance, all of which has helped the airline stay a step ahead of the growth curve," said Nikos Kardassis, chief executive officer of Jet Airways, in a statement.
