Jet may profit on lower fuel costs

New Delhi: Jet Airways (India) Ltd., the country’s biggest carrier, may report its first profit in three quarters, helped by lower fuel prices and income from the sale of an aircraft.
Jet Airways will post net income of Rs 138 million in the three months ended December 31, compared with Rs 610 million a year ago, according to the median estimate in a Bloomberg survey of seven analysts. The airline had losses totaling Rs 1 billion in the preceding two quarters.
Billionaire owner Naresh Goyal needs to return Jet to profit to help raise $800 million for new planes, after losing market share to low-fare carriers and failing to buy Sahara Airlines Ltd. India’s carriers may lose $250 million this year as new entrants increase competition and force down fares. “Jet’s turnaround is primarily being led by lower fuel prices,” wrote N Krishnan, a Mumbai-based analyst at CLSA Asia-Pacific Markets, in a Jan. 8 earnings note. “Jet will benefit from what is seasonally its strongest quarter,” wrote Krishnan, who expects it to earn Rs 290 million in net income.
16/01/07 Economic Times

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