Jet Airways: Wind beneath its wings

Mumbai: Maintaining its focus on budget passengers and improving its fleet costing has seen Jet Airways record a positive performance. These moves helped the airline consolidate its market share, which grew to around 19 per cent in the June quarter from the 16 per cent level in the previous year. Also, its consolidated revenues for the June quarter were higher than Street estimates with 23 per cent growth over the same period of the previous year.
The load factor, which is critical for productivity, increased by a strong 634 basis points to 80 per cent levels. The company, therefore, managed to see its traffic grow about 40 per cent to 3.55 million passengers, compared to the overall industry growth of around 25 per cent. The volume growth and the rationalisation of the fleet to an all-Boeing one has also impacted costs. In addition, the company managed to improve its consolidated margins by 504 basis points over the year to 12.2 per cent, from nearly nothing in the previous year.
Domestic flight services were also increased by 7.8 per cent in the quarter under review on an annual basis and international flights by 28.4 per cent, according to analysts.
07/08/10 Akash Joshi/Business Standard

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Categories: Jet Airways Aug 2010