Jet Airways sees intl load factors rising in Q3

Jet Airways sees intl load factors rising in Q3

Mumbai: Country’s largest private sector carrier Jet Airways Ltd expects a boom in international travel during the year-end peak season and sees load factors to rise further, as it adds more international routes.

“What you will see in quarter three is some kind of an uptick in seat factors - maybe going up to 83-84 percent," K.G. Vishwanath, vice-president - commercial strategy and investor relations, said in a conference call.

He said the company has been able to tackle seasonality factor “to a large extent" using wider network connectivity.

Jet Airways has achieved seat factors of around 80% on international routes during the second quarter. The international business accounts for roughly 60% of Jet’s total revenues.

The airliner, which has a fleet of 90 aircraft, will also add some flights to its international operations during the year.

It already has announced plans to operate daily direct services between Milan, Italy and New Delhi from 5 October, pending government approval.

Vishwanath dubbed the season between 1 December and 15 January as “peak of peaks" for the company’s international operations.

The airline which reported a net profit of 12.4 crore for the quarter ended 30 September, compared with a net loss of about 407 crore a year ago, expects revenues to rise faster than yields.

The firm’s cash position as of 30 September was at 760 crores, while debt stood at 13,700 crore.

It also has plans to sell and lease back twenty 737 aircraft, officials said.

The Indian aviation sector is bouncing back with domestic passenger traffic growing 18.5% in Jan-Sept.

The Jet group, which includes low-cost carrier JetLite, has a market share of 26.9% in the country’s aviation sector.

Jet, which has partnered with developer Godrej Properties to develop a office complex on land belonging to Jet in Mumbai’s Bandra Kurla Complex, expects an upfront payment of between 500-550 crore from the pact, officials said.

Jet Airways closed up 0.17% at 811.8 in a firm Mumbai market.