Jet Airways reports highest ever quarterly profit of Rs 4.7 billion

In the three months ended December 2015, Jet Airways posted a “record” net profit of Rs 467 crore on the back of higher passenger traffic and lower fuel costs.

Shares of Jet Airways jumped over 8 percent intraday on Monday after it announced highest ever quarterly profit in October-December.

In comparison, InterGlobe Aviation (IndiGo) which has been rising after its debut a year ago, saw fuel cost decline by 20 percent to Rs 1165.86 crore in the December quarter.

Other operating income for the company during the quarter stood at Rs 419.83 crore, as against Rs 370.42 crore, a year ago.

The growth in passengers flown and the increased aircraft utilization led to increase in ASKM, which helped in improving both operating and financial performance in the third quarter.

The flight is gas costs fallen its third-quarter, within the interval by 27 percent. The amount includes aircraft debt worth Rs 4,666 crore.

Naresh Goyal, chairman of Jet Airways, attributed the strong FYQ3 results to “several initiatives undertaken for improving productivity and efficiency”. Aircraft utilisation for the Boeing 737 fleet continues to rise and reached 13.07 hours in the reporting period, which it claimed is one of the highest in the industry.

Jet Airways further enhanced its synergies with partners, expanding its codeshare partnership with strategic partner Etihad Airways.

In March last year, European airline Air Serbia, in which Etihad owns a 49 percent stake, reported a net profit of $3 million in its first full year of operations since the two carriers became partners.

At 9.43 am, Jet Airways shares were trading 5.37 per cent up at Rs 601.50.

Ball concluded: “The competitive and structural challenges in the Indian aviation market continue to put pressure on our yields”.