New Delhi, Nov : Jet Airways Group on Friday reported a strong improved performance for the second quarter ending 30 September 2014, as its three-year turnaround strategy and the partnership with new minority shareholder Etihad Airways started to impact the business positively.
Compared to the same quarter of the previous financial year, Jet Airways’ financial performance improved by Rs. 956 crores or 95.7 per cent. The net loss before taxes is Rs. 43 crores compared to a net loss of Rs. 999 crores for the same period last year.
Total revenue (combined) for the second quarter FY2015 increased by 13.7 per cent to Rs. 5,092 crores from Rs. 4,480 crores.
Passenger revenues for Q2 FY15 rose by 13.9 per cent to Rs. 4,277 crores from Rs. 3,753 crores, and cargo revenue by 10.5 per cent to Rs. 379 crores from Rs. 343 crores, compared with the second quarter last year.
The combined passenger load factor increased by 1.2 percentage points from 77.4 to 78.6 as the airline gained new customers. Yield was up by a strong 6.4 per cent, as the business plan to reshape the airline, and the benefits of the partnership with Etihad Airways, took hold.
Overall RASK (Revenue per Available Seat Kilometer) in Q2 FY15 increased by 7.8 per cent to Rs. 4.61 from Rs. 4.27.
While domestic RASK rose by 18.6 per cent to Rs. 5.14 from Rs. 4.34, international RASK increased by 2.2 per cent to 4.32 from 4.23, reflecting a strengthening of the international operations of the airline.
The performance of the airline’s cargo division is also proof of the turnaround at Jet Airways. As of Q2 of FY15, Jet Airways is now Etihad’s largest cargo interline partner. Cargo revenues increased by 10.5 per cent increase from Rs. 343 crores to Rs. 379 crores
Cramer Ball, CEO of Jet Airways said, “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.
“The operational restructuring initiatives with route and network rationalisation are already yielding dividends on the domestic and international network. The organic network expansion, coupled with enhanced global connectivity through alliances and codeshares, has also helped increase international passenger traffic. All of which makes me confident that our move to a single brand by December, will help provide our guests with exceptional value and a significantly enhanced and consistent product offering,” Ball said.
“In our commitment to improve our customer’s experience, the JetPrivilege Programme has been enhanced by the introduction of a new mileage accrual and reward structure, as well as new strategic partnership that will add value and strengthen the travel experience for our Jet Privilege members,” he said. /IBNS