Airlines Jet Airways reports partly positive financial results for Q2 FY19
- Jet Airways
India´s Jet Airways has reported the company´s financial results for the second quarter of the Fiscal Year 19 (FY19), which see the airline´s turnaround strategy to work out.
The board of directors at Jet Airways has announced the financial results for the second quarter of FY19 and reported financial improvements compared to last year’s results. The carrier has been struggling with its finances for the past years.
Due to the backdrop of a strong rise in Brent fuel price by more than 50% compared to Q2 FY18, a challenging pricing situation in the domestic market and a depreciating rupee, Jet Airways´ financial performance has yet again overall been negative. The airline reported a consolidated net loss of INR 1,261 cores, representing the financial difficulties the airline is currently in.
However, the carrier was able to register a 7.3% growth in Available Seat Kilometres (AKSMs) over last year´s results. Moreover, Jet Airways noticed a 10.5% growth in Revenue Passenger Kilometres (RPKMs). In total, the Indian airline carried 7.34 million guests. In regard to productivity and efficiency, the airline gained significant enhancements in operational statistics. The On-time performance was improved to 84%.
After the board announced its turnaround strategy last quarter, which included cost saving in excess of INR2000 cores over the next two years, it now seems that this strategy is bringing success. As matter of fact, Jet Airways has already realized cost savings of over INR 500 cores.
Vinay Dube CEO at Jet Airways said: "With our clearly defined focus on profitability, we are in the midst of turning the ship around. We remain closely engaged with all our partners, who acknowledge the challenges faced by the Indian aviation industry and have been very supportive."
Jet Airways also expanded codeshare agreements with Delta Airlines, Bangkok Airways, Korean Air, Malaysian Airlines and Etihad Airways. Revenues from codeshare and interline guests grew by 30.9%. The airline has also announced this November that it will enhance its route network to Asia and within India.
The carrier has furthermore taken delivery of 11 new state-of-the-art Boeing 737 MAX aircraft this fiscal, enhancing the airline´s fleet.
Founded in 1992, Jet Airways has become India´s second-largest airline. The carrier operates with 110 aircraft, including Airbus A330s, ATR72s, Boeing 737s and B777s. Jet Airways flies to 17 countries and 60 destinations.
Source © jetairways.com