Jet flies back in to profitability

Mumbai: Jet Airways has managed to return to profitability in the third quarter of 2006-07, mainly due to lower fuel costs and high load factor. Jet posted a third-quarter net profit of Rs40 crore, down 34 per cent from the corresponding previous period, when it registered a net profit of Rs 61 crore.

The company posted losses of Rs45 crore and Rs55 crore in the first and second quarters of the current fiscal.

The airline benefited from a load factor of 50 per cent in the premium classes, which increased the yield per passenger.

Jet''s yield for the domestic sector was Rs5,570 per passenger, including surcharges, up 4.2 per cent from the same period last year. Its yield from international operations stood at Rs16,290. Net income from operations was up 31 per cent to Rs1,935.7 crore, while operating expenses rose to Rs1,795.3 crore, recording an increase of 45 per cent.

The domestic sector accounted for 78 per cent of revenues, down from 86 per cent in the same period last year. The load factor for the domestic sector was 70.1 per cent, compared to 72.5 per cent earlier, and up from 64 per cent in the previous quarter.

Mr Prock-Schauer said that the airline was making a profit from its SAARC and Asean routes. The company posted pre-tax loss of Rs11 crore on its international operations, down from Rs34.7 crore over the same period last year and Rs111.4 crore in the previous quarter.