Jet Airways records high seat factors and strong operating margins

Jet Airways, India’s largest airline group today reported impressive earnings for the quarter ending March 31, 2010 as a result of a series of strategic marketing and financial initiatives implemented during the fiscal year.
The revival in the domestic travel industry and high levels of seat factors achieved in the International operations also have contributed to these results. The improvement in EBITDAR margin was also due to cost efficiencies that we have achieved over the last few quarters.
The Jet Group has maintained its leadership in the Indian aviation industry with the highest market share of 25.8 % for the quarter ending March 2010.
Mr. Nikos Kardassis, Chief Executive Officer, Jet Airways (I) Ltd said, “The positive turnaround at the Jet Airways’ Group is a result of constant product innovation, stringent cost management, smart marketing and strong fiscal prudence, as well as the hard work dedication and commitment of our people.
Our unique ability to develop unique solutions like the recent introduction of Jet Airways ’Konnect Select’, a new premium cabin offering on Jet Konnect flights, is a prime example of a carrier that is able to undertake strategic initiatives, as a direct response to dynamic market requirements. Also, the pace at which we responded to crisis situations like the recent volcanic ash issue is a clear indication of how Jet is able to act rapidly in such situations and provide solutions to customers.
As the buoyant global economic environment, coupled with the relaxation of governmental and corporate travel restrictions, results in an upswing in air travel demand, Jet Airways is perhaps the best poised to benefit from the growth. In the quarter ending March 2010, the domestic and international traffic for Jet Airways grew by 26% and 31% respectively, with the continued buoyancy in the Indian domestic environment. The Industry load factors have also moved up to the low to mid 70% range over the last few months.
Our code share agreements, as well as the introduction of new domestic and international routes like the recently launched Mumbai–Johannesburg–Mumbai service, will also hold the airline in good stead for the future.”
Jetlite has also shown a strong turnaround in operating performance. Jetlite is still achieving higher yields as compared to other low fare operators as is Jet Airways Konnect in addition to achieving high levels of seat factors.

Domestic operations accounted for 44% of total revenues Rs. 12,555 million (US$ 279.6 million).
Domestic traffic for Jet grew by 26.3% for the quarter vs same period last year. As against this, industry traffic grew only by 21%
Seat factors grew from 64.6% in Q4 FY09 to 72.9% in Q4 FY10 on a higher capacity (ASKM of 2,600 million in Q4FY10 versus 2,330 million in Q4 FY09)
The EBITDAR margins are at 23% in Q4FY10 versus 17% in Q4 FY09.
In the competitive domestic low fare segment, Jet Airways initiative of introducing Jet Airways Konnect service in May 2009 has also contributed to its strong performance, registering average load factors of ~73% for Q4 FY10, boosting network wide seat factors and revenues.
International operations accounted for 56% of total revenues Rs. 16,217 million (US$ 361.2 million)
Achieved record high seat factor of 81.6% in Q4 FY10 versus 75.3% in Q4 FY09.
The EBITDAR margins are at 23% in Q4FY10 versus 24.0% in Q4 FY09.
These results include a negative impact of aircraft on ground of Rs. 532.77 million (US$ 11.8 million) for the quarter.
20/05/10 PRESS RELEASE/Jet Airways

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Categories: Jet Airways May 2010