Jet Airways Group has declared its highest ever annual profit in its history for the year ended March 31, 2016, and thereby achieved return to profitability a year earlier than the target set in its turnaround plan two years ago.
The consistently strong financial performance has enabled Jet Airways to reduce its debt by USD 256 million during FY16.
Cost per available seat kilometer (CASK) excluding fuel dropped by 3.2% to 4.96 cents in FY16, clearly indicating Jet Airways’ success in achieving operational efficiencies throughout its business.
For Q4 of FY16, the company reported a net profit of USD 63 million, compared to a loss of USD 291 million for the same period last year. It marks the company’s fourth straight quarter of profitability.
Naresh Goyal, Chairman, Jet Airways, said: “Jet Airways has been revitalized as a business in the last two years. Our focused efforts have resulted in significant improvement in operational performance leading to record profitability.
“Customer satisfaction, network enhancement and driving benefits through further improvements in operational efficiencies continue to be our key priorities.
“The Indian aviation industry is witnessing a growth phase and Jet Airways’ commitment to connect India to the world and vice versa is our contribution to India’s economic growth story.
“The competitive and structural challenges in the Indian aviation market continue to exist. In addition, the induction of capacity and the enhanced competitive scenario is creating a constant pressure on yields. We will continue to focus on strengthening our balance sheet to ensure sustainable growth and value addition for our stakeholders.
“We are committed on delivering an enhanced guest experience and leveraging the commercial and operational synergies from our partnership with Etihad Airways.”
The improvement in performance has been achieved largely due to the combination of enhanced fleet utilization and optimization of network, which enabled better integration between domestic and international operations. Additionally, the implementation of a full service strategy across the domestic operation, supported by the “Guest First” approach along with an increased focus on premium traffic, has contributed positively.
James Hogan, Vice Chairman, Jet Airways and President and Chief Executive Officer, Etihad Aviation Group, said: “We are very satisfied with the strong operational and financial performance achieved by Jet Airways.
“The return to profitability is a result of the effective partnership between Jet Airways and Etihad Airways. Between the two airlines, we have been able to provide a compelling option of wider combined network and exceptional guest experience for travellers to and from India.
“Etihad Airways is committed to its partnership with Jet Airways and is focused on driving further synergies, along with other Etihad Airways Partner airlines.”
Continuing the positive trend from Q3, the final quarter of 2016 saw ongoing improvements in all key performance indicators. Passenger revenues for Q4 FY16 rose by 3.1% per cent to USD 694 million, while EBITDA increased to USD 157 million compared to USD 44 million in Q4 FY15.
Overall codeshare traffic for the fourth quarter of FY16 grew 21 % to 570,000 passengers. A wider network of codeshares now enables Jet Airways to offer significantly enhanced global connectivity and has helped deliver the increase in passenger traffic. Codeshare traffic with strategic alliance partner Etihad Airways over its Abu Dhabi hub and with its partner airlines grew 45% in Q4 of FY16.
Jet Airways, together, with Etihad Airways, now has the largest market share of the Indian international traffic.