After a long flight, Jet Airways is 'nearing break-even'

Mumbai: Jet Airways, the country’s largest airline by passengers, is likely to breakeven at net profit level in both domestic and international sectors in the first quarter of this fiscal, according to an HSBC analyst.
In a note to clients on Tuesday, Sachin Gupta, analyst, HSBC Securities and Capital Markets, said, “The company (Jet) expects the supply and demand situation to stay tight in FY11 and the overall load factor to improve by 4 percentage points. Jet Airways expects yield to improve by 10-15% in the first quarter of FY11. International operations have also stabilised with most routes breaking even.”
Kapil Kaul, chief executive officer of airline consultancy firm, Centre for Asia Pacific Aviation (Capa), backed this forecast saying his company had predicted Jet’s turnaround in January itself.
A few days back, the company said it is close to breaking even on its US routes.
In December last year, the company had achieved break-even at the operating level.
According to an analyst with a domestic research firm, buoyant local demand and stabilisation of operations on the international sector will help Jet.
The airline has also been able to improve its fleet utilisation after dry-leasing three aircraft to Thai Airways and four to Turkish Airways. The company will earn over $1 million per aircraft per month through aircraft lease deals.
14/04/10 Neha Rishi/Daily News & Analysis

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Categories: Jet Airways Apr 2010