Jet Airways posts first Annual Profit in 8 years

Jet Airways posted its first annual net profit after eight years and its fourth straight quarterly net profit helped by lower fuel expenses and its own cost control measures. India's second-biggest airline by market share posted a record consolidated net profit of  Rs.1,211.7 crore for the financial year ended March 31, 2016, compared to a net loss of Rs.2,097.4 crore in FY15. Before this, Jet had posted a net profit of Rs.27.9 crore in the year 2006-07, according to figures on the BSE.
Jet's chairman Naresh Goyal said Jet “has been revitalised as a business in the last two years,“ while James Hogan, chief of its strategic partner Etihad Airways said he and his team were “very satisfied with the strong operational and financial performance“ of the airline.
A fall in prices of fuel -the single biggest component in an airline's operating expenses -have turned around fortunes of most Indian carriers. Prices of aviation turbine fuel (ATF) fell 22% in the twelve months till the end of FY16.
Jet has also financially benefitted from its 24% stake sale to Etihad which apart from giving it a much needed cash infusion also brought about synergies in terms of joint fuel uplift, marketing and sales. While some have said the partnership clipped Jet's international ambitions it gave it a flush of codeshare traffic.
Jet's operational parameters during the quarter improved, but it continued to face a pressure on yields. The airline's average aircraft utilisation during the quarter (number of hours a plane is flown during the day) increased 7% to 12.8 hours. Its cost per available seat kilometre (CASK) -a measure of what an airline spends per seat per kilometre flown -fell 16% while CASK excluding fuel fell 10.3%.However, revenue per available seat kilometre also declined by 6.7%.

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