India-based Jet Airways has reported its first profit in seven quarters after it announced a revamped business strategy following a deal with Abu Dhabi carrier Etihad Airways.
Jet Airways’ profits rose 101 per cent during the third quarter of the fiscal year of 2015 (FY15) that ended on 31 December, 2014 to reach $500,000. This compares to a loss of $46 million in the corresponding period of 2013, a statement said.
The airline’s total revenue for the third quarter of FY15 rose nine per cent to reach INR5,436 crores ($875 million) while passenger revenues rose 8.8 per cent to reach INR4,621 ($744 million).
Earnings before interest, tax, depreciation and amortization (EBITDA) rose to reach $28 million in Q3 FY15 compared to $2 million in Q3 FY14.
The number of passengers carried by Jet Airways rose 10.4 per cent to reach 5.8 million in Q3 FY15, the airline said. Codeshare traffic also surged 93 per cent to reach 314,351 passengers in Q3.
“At the beginning of FY15 we outlined a three-year turnaround plan to get Jet Airways back to profitability,” said Cramer Ball, CEO of Jet Airways.
“Today our business performance provides hard evidence that we are turning the business around and are on track to achieve our targets.
“It is pleasing to report that we have achieved significant growth in all the major KPIs in a very competitive environment.
“While the global and local operating conditions have eased, we only expect to see the real impact of the lower fuel price in the next quarter.”
Jet Airways’ quarterly profit follows a deal with Abu Dhabi’s Etihad Airways in 2013.
Etihad completed the acquisition of a 24 per cent minority stake in Jet Airways for $379 million in April 2013, becoming the first foreign carrier to invest in an Indian airline after the country relaxed foreign ownership rules.
However, the deal did not receive the final regulatory approvals from the Indian authorities until October 2013.
Post the sale, Jet Airways announced a three-year plan last year that focused on widening its network with new services to markets such as Europe, Australia, China and South East Asia.
The Indian carrier also expanded its codeshare network in India with Etihad following the deal.
Jet Airways currently has a fleet of 117 aircraft, which includes 10 Boeing 777-300 ER aircraft, eight Airbus A330-200 aircraft, four Airbus A330-300 aircraft, 77 Boeing 737-700/800/900/900 ER aircraft and 15 ATR 72-500 and three ATR72-600.