Jet Airways claws its way back to profitability

Indias Jet Airways has worked its ways back to profitability after posting (1/22/2007)The companys net profit during the third quarter, ending on December 31, was down at US$8.9 million in comparison with US$13.5 million in the corresponding previous quarter. But the performance is an improvement over the second quarter loss of US$12.2 million and first-quarter loss of US$9.7 million. The positive financial result in the quarter reflected the peak season impact as well as various network initiatives and improved use of the companys inventory through better yield management. The company expects the fourth quarter to reflect the seasonality inherent in the business. As per the information available, a fuel surcharge on tickets and income from sale and lease back of aircraft have helped Indias largest domestic carrier Jet airways to turn around after two quarters of losses. Jet, which holds more than a third of the domestic market, said sales grew by 31 percent to US$430 million compared to the same quarter last year. About international operations, Wolfgang Prock-Schauer, chief executive officer said that the company is close to the break even level, and that international losses are down to US$2.5 million. "The airline will start flying from Mumbai to the United States from August this year," Prock-Schauer reportedly said. It also plans two other long-haul flights - to San Francisco via China and to Toronto via Europe - by the end of the year. International operations, that now account for 28 percent of the airlines revenues will go up to 50 percent in two years, he added. The yield on domestic operations stood at $125 per passenger compared to $362 for international flights. Due to the rising competition it is facing from newly launched discount carriers, Jets market share has gone down. But Jet expects half its revenue to come from its overseas operations by March 2009 from its expanding overseas routes.

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