New Delhi: Jet Airways, India’s second-biggest airline by passengers, reported an annual profit yesterday for the first time since 2007 and a year ahead of schedule under its 2014 turnaround plan.
The carrier, part-owned by Abu Dhabi’s Etihad Airways, said lower fuel costs and higher aircraft use helped it swing to a profit in the year ending on March 31 but warned that growing domestic competition was putting pressure on yields.
For the year, its net profit was a record 12.12 billion rupees ($181 million) compared with a loss of 20.97bn rupees in the previous year, the company said in a statement.
Jet reported a profit of 4.26bn rupees for its fourth quarter to the end of March, compared with a loss of 18.03bn rupees in same quarter a year earlier.
It lowered its debt by 16.8bn rupees during the year but did not say what the latest debt level was.
The airline would continue to focus on strengthening its balance sheet to sustain growth, chairman Naresh Goyal said in the statement, although he said competitive and structural challenges remained.
“The induction of capacity and the enhanced competitive scenario is creating a constant pressure on yields,” Goyal
said.
Jet competes with state-run Air India and Vistara – a joint venture of Tata Group and Singapore Airlines – in the so-called full-service category in a domestic market
dominated by low-cost carriers.
InterGlobe Aviation’s IndiGo is India’s top carrier with 38.7 per cent of the market as of April.
Jet Airways’ market share was 18.9pc in April, down from 23.1pc a year ago, according to government data.
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