India´s Jet Airways has worked its ways back to profitability after posting (1/22/2007)
The company´s net profit during the third quarter, ending on December 31, was down at US$8.9 million in comparison with US$13.5 million in the corresponding previous quarter. But the performance is an improvement over the second quarter loss of US$12.2 million and first-quarter loss of US$9.7 million.
The positive financial result in the quarter reflected the peak season impact as well as various network initiatives and improved use of the company´s inventory through better yield management. The company expects the fourth quarter to reflect the seasonality inherent in the business.
As per the information available, a fuel surcharge on tickets and income from sale and lease back of aircraft have helped India´s largest domestic carrier Jet airways to turn around after two quarters of losses. Jet, which holds more than a third of the domestic market, said sales grew by 31 percent to US$430 million compared to the same quarter last year.
About international operations, Wolfgang Prock-Schauer, chief executive officer said that the company is close to the break even level, and that international losses are down to US$2.5 million.
"The airline will start flying from Mumbai to the United States from August this year," Prock-Schauer reportedly said. It also plans two other long-haul flights - to San Francisco via China and to Toronto via Europe - by the end of the year. International operations, that now account for 28 percent of the airline´s revenues will go up to 50 percent in two years, he added. The yield on domestic operations stood at $125 per passenger compared to $362 for international flights.
Due to the rising competition it is facing from newly launched discount carriers, Jet´s market share has gone down. But Jet expects half its revenue to come from its overseas operations by March 2009 from its expanding overseas routes.