Jet Airways, on Friday, reported a standalone net profit of Rs.70 crore in the second quarter ended September 30, 2014, as compared to a net loss of Rs.891 crore in the same period last year. This is for the first time after six quarters the airline has reported profit.
This is mainly on account of one-off gain of Rs.305 crore by way of surplus from sale of ‘Jet Privilege’ frequent flyer programme to Etihad Airways prior to the equity deal with the Abu Dhabi-based airline.
During the said period, the airline reported standalone revenues of Rs.4,772 crore as compared to Rs.4,101 crore in the same period last year, up 16 per cent.
However, due to losses at JetLite, the Jet Group reported a loss of Rs.43 crore for the second quarter as compared to a net loss of Rs.999 crore in the same period last year.
Jet Group’s combined revenue went up by 13.7 per cent to Rs.5,092 crore from Rs.4,480 crore in the same period last year. For a single brand identity, JetLite’s operations are being integrated into Jet Airways by the end of this year.
The airline said its three-year turnaround strategy and the partnership with Etihad Airways had started to impact the business positively.
“I am extremely pleased by the progress that is evident across several areas during the quarter. This is in keeping with our three-year turnaround plan,” said Jet Airways CEO Cramer Ball.
He said the operational restructuring initiatives with route and network rationalisation were already yielding dividends on the domestic and international network. The organic network expansion and enhanced global connectivity through alliances and code shares have also helped in the increase in international passenger traffic.
The company’s at its board meeting on Friday approved a proposal to raise long-term finance of $300 million subject to regulatory approvals.
