News
Jet Airways achieves major FY2015/16 turnaround
June 3rd 2016
Mumbai-based Jet Airways has reported a net profit of $185 million for the financial year ended March 30, reversing a previous-year net loss of $342 million. Read More » Jet cited enhanced fleet utilization and network optimization as the key drivers of its turnaround, although the significantly lower fuel price must surely have played a big part, too.
Jet is India’s second largest carrier, following LCC IndiGo Airlines. In FY 2015/16, Jet’s revenues grew 5.9% to $3.38 billion as ASKs increased 11.9% year-on-year, and revenue passenger numbers improved 14.8% to 25.8 million, resulting in a load factor of 82.6%, up 0.2% compared to the previous accounting period.
Jet is 24%-owned by Abu Dhabi-based Etihad Aviation Group. It said codeshare traffic had increased sharply from 1.6 million to 2.1 million year-on-year, with passengers and revenues delivered by Etihad improved 86% and 72%, respectively.
Going forward, Jet chairman, Naresh Goyal, said “competitive and structural challenges in the Indian aviation market continue to exist,” while “the induction of capacity and the enhanced competitive scenario is creating a constant pressure on yields.”
Nevertheless, Etihad Airways will return six B777-300ERs to Jet over the course of the next six months. This will enable the latter to upgrade current A330 routes such as Amsterdam, Paris and Toronto, while deploying the excess A330s on high-demand regional services to Bangkok and Singapore.
