16 Aug 2015 08:00
Jet Airways Group today announced a Q1 profit and significantly improved performance for the quarter ending June 30, 2015 providing further evidence of the growing momentum of its three-year turnaround programme.
- Continued improvement in performance shows three-year
turnaround programme gaining momentum
- Jet Group Q1 (FY16) highlights include:
- Profit of INR 226.4 crores in Q1 FY16 compared to
loss of INR 258 crores in Q1 FY15
- Total revenue up by INR 561 crores or 11% to INR 5,658 crores in Q1
FY16 from INR 5,097 crores in Q1 FY15
- Passengers carried increased by 21.3% to 6.29 million
passengers in Q1 FY16 from 5.19 million in Q1 FY15
- Codeshare traffic surges by 51 % with 487,921 passengers
carried in Q1 FY16 underpinned by partnership with Etihad Airways and partner
- Average aircraft utilisation grows by 11.5 % to
12.7 hours in Q1 FY16 compared to 11.4 hours in Q1 FY15. Amongst the highest
utilisation for 737s in the world.
Naresh Goyal, Chairman of Jet Airways
said: "Our performance in the first quarter of this financial year demonstrates
once again that the measures we are taking to bring the business back to
profitability are having the desired result.
“All the major key performance indicators have shown progress as we
continue to focus on customer satisfaction, network enhancement and improvement
Compared to the same quarter of the previous
financial year, Jet Airways’ financial performance improved by INR 484.4 crores
or 187.8%. The net profit before taxes is INR 226.4 crores compared to a net
loss of INR 258 crores for the same period last year.
The airline’s total revenue (combined) for the first quarter FY16
increased by 11% to INR 5,658 crores from INR 5,097 crores. Passenger revenues
for Q1 FY16 rose by 10.4 % to INR 4,707 crores from INR 4,262 crores.
The combined passenger load factor in Q1 of FY16 increased by 2.2 percentage
points to 82.4%, compared to 80.2% in Q1 of FY15. This improvement is largely
attributable to the optimized network which ensures tighter domestic and
international network integration.
Other contributing factors include synergies with partner carriers, the implementation
of a consistent, full service, single brand strategy across the entire domestic
airline operation and an increased focus on premium traffic.
Jet’s domestic capacity grew by 13.3% and passenger traffic increased by
25.4%, significantly exceeding local industry growth.
Cramer Ball, Jet Airways’ Chief Executive Officer, said: "Despite
the increasingly competitive domestic landscape driven by aggressive new market
entrants, our market share in India went up by 1.1 percentage points to 21.9 %.
This means that one in every five domestic passengers flew on Jet Airways.
“Our customers have embraced the changes we have made. This is a strong
endorsement of our single brand full service product complemented by the ‘Guest
First’ approach to service and hospitality, and validates our considerable
investment in product enhancements in the air and on the ground.”
Jet Airways also recorded 12.4 % growth in
international passenger traffic during the first quarter. Further augmenting its
global connectivity, the airline added three new codeshare partners –
airberlin, Air Seychelles and Bangkok Airways – taking the total number of codeshare
partners to 21. The quarter witnessed a significant 51% growth in overall codeshare
traffic while at the same time the codeshare traffic by strategic partner
Etihad Airways and its partner airlines grew by 181%. A record number of passengers
took advantage of the choice and convenient connections offered by the combined
Mr Ball concluded: “The competitive and structural
challenges in the Indian aviation market continue to put pressure on our yields
and costs. In addressing these, we continue to focus on leveraging the
commercial and operational synergies through our partnership with Etihad
By virtue of Jet Airways’ equity relationship with
Etihad Airways and its partner airlines, significant savings and synergies are
achieved through joint maintenance and ground handling facilities, cabin crew
training and common procurement of aircraft, fuel, and insurance.