Jet Airways on upswing despite hazy outlook

Jet Airways India, whose performance is treated as the barometer of the prevailing trend in the airline industry, managed to contain losses for FY10. On a consolidated basis, for FY10, Jet has been able to cut down losses by over half to Rs 420 crore from Rs 960 crore earlier.
Four important factors contributed to this: postponement of capacity addition, adhering to the low-cost carrier (LCC) model, resorting to increasing shorter haul routes and a double-digit growth in passenger numbers.
In the March 2010 quarter, in the domestic market, the company recorded a jump of 24% in its earnings before interest depreciation tax amortisation and rentals (EBIDTAR) — an operational performance barometer of an airline company — on a Y-o-Y basis. Its revenues grew by 12% to Rs 2,870 crore in comparison to the previous year, while its net profit grew by 9.4% to Rs 58 crore for the same period.
On the domestic front, the company recorded a load factor of 72.9% from 64% in the March 2009 quarter. The company’s revenues from international operations grew by 13% to Rs 1,621 crore on a Y-o-Y basis. Also, for international operations, the EBITDAR improved by 10% to Rs 367 crore for the quarter in comparison to the previous year.
For the aviation industry, the past two quarters have been profitable ones. Not only the low-cost carriers, but also full service carriers, have been able to register good passenger growth. Jet Airways itself registered growth for the four consecutive months in its passenger numbers.
24/05/10 Rajesh Naidu/Economic Times

To Read the News in full at Source, Click the Headline

Categories: Jet Airways May 2010