Jet Airways Q2 profit at Rs85 crore amid pricing pressure
Announcing the latest quarterly results, Jet Airways says it raked in Rs85 crore profit “despite a traditionally ‘lean’ quarter and domestic yields being under pressure”
New Delhi: Jet Airways group on Friday reported a nearly flat profit at Rs85 crore in the second quarter ended September 2016 amid pressure on domestic ticket prices and lean travel season.
At the group level, the full service carrier had a profit of Rs83 crore in the year ago period. The group’s total revenues rose little over 3% to Rs5,682 crore in the latest September quarter.
In the same period last year, it stood at Rs5,504 crore.
Announcing the latest quarterly results, Jet Airways said it raked in Rs85 crore profit “despite a traditionally ‘lean’ quarter and domestic yields being under pressure.”
Jet Airways chairman Naresh Goyal said improvements in operational performance have helped the airline participate in the strong growth being witnessed in Indian aviation market. Domestic ticket prices have come under pressure amid local deploying, increased capacity and aggressive pricing ways to attract more passengers.
The domestic aviation sector has been growing over 20% for almost two years now. In the 2016 September quarter, the airline carried over 6% higher number of passengers at 6.77 million. The same stood at 6.37 million in the year ago period.
Total fleet utilisation rose to 12.7 hours daily while the use of Boeing 737 planes increased to 13.3 hours in the latest September quarter. “Overall traffic from codeshare partners increased by 15% to 1.17 million passengers (in Q2 FY17) carried from 1.02 million passengers in Q2 FY16,” the release said.
Gulf carrier Etihad Airways owns 24% stake in Jet Airways. In the latest quarter, the domestic airline’s overall codeshare traffic went up 15%. “Passengers and revenues delivered by Etihad Airways and Etihad Airways Partners rose by 32% and 25% respectively in Q2 FY17,” the release said.
Jet Airways vice-chairman as well as Etihad Aviation Group’s president and chief executive officer (CEO) James Hogan said its continued collaboration has supported ongoing improvement in Jet Airways performance “despite the ongoing pressure on yields.”
On a standalone basis, Jet Airways saw its net profit jump to Rs108.11 crore in the 2016 September quarter compared to Rs87.59 crore in the same period a year ago. Standalone total income from operations increased to Rs5,420.35 crore from Rs5,257.97 crore in the year ago period.
Shares of the company declined over 3% to close at Rs424.95 on the BSE.