Jet Airways Q2 profit climbs to Rs 88 cr on lower fuel costs

New Delhi: Jet Airways Wednesday reported 25 percent jump in net profit at Rs 87.59 crore in the second quarter of this fiscal, ended September 30, boosted by low aviation turbine fuel prices and high passenger traffic.

The private carrier had posted a net profit of Rs 69.82 crore in the year-ago period as it had benefitted from surplus arising out of slump sale of its Jet Privilege Frequent Flyer Programme.

Jet Airways' total income from operations in the 2015 September quarter rose 10 percent to Rs 5,257.97 crore. In the year ago period, the same stood at Rs 4,772.25 crore, according to a filing to the BSE.

The figures are on standalone basis.

With steep decline in global crude prices, the airline saw a significant drop in its fuel expenses which stood at Rs 1,336.61 crore in the latest September quarter compared to Rs 1,845.95 crore in the year-ago period.

In the latest quarter under review, the airline carried a total of 6.37 million passengers, an increase of 26.3 percent compared to 5.04 million passengers flown in the second quarter of previous fiscal, Jet Airways said in a statement.

During the 2015 September quarter, average aircraft utilisation grew 9.9 percent to 12.6 hours making its operations more efficient.

Noting that the domestic aviation market was witnessing robust traffic growth, Jet Airways chairman Naresh Goyal said the airline was committed to providing enhanced connectivity and a full-service travel experience. "Our financial performance in the second quarter clearly demonstrates that our efforts are showing positive results," he added.

"Compared to Q2 of FY15, Jet Airways' financial results improved by Rs 126 crore in Q2 of FY16. The net profit before taxes is Rs 83 crore compared to a net loss of Rs 42.8 crore for the same period last year," the release said.

As per the release, the airline's total sales grew 8.1 percent to Rs 5,504 crore in the latest July-September quarter. In year-ago period, the same was at Rs 5,092 crore.

"It is encouraging to report a profit in the second quarter, which is traditionally a lean season for the aviation sector...The growth in passengers flown by Jet Airways and the improved aircraft utilisation have been significant contributors to the performance in the second quarter," Jet Airways chief executive Carmer Ball said.

Passenger revenues rose 9.5 percent to Rs 4,682 crore in the latest September quarter.

During this period, domestic capacity grew 16.6 percent and that in international routes increased 6.6 percent.

"This improvement is largely the result of optimising the network to enable tighter integration between domestic and international networks, enhanced synergies with partner carriers and improved operational performance," the release said.