India’s private carrier Jet Airways flies into profit

India’s largest private sector airline, Jet Airways, has swung to a quarterly net profit from a loss a year earlier, led by a rise in passenger air traffic, a statement said.

Jet posted a net profit of Rs35 million (Dh) for the first quarter of the financial year to June from a loss of Rs2.25 billion in the same period a year earlier.
Total revenues for the quarter rose 24 per cent to Rs30.23bn.

“The airline has seen nine straight months of robust growth,” Nikos Kardassis, chief executive of Jet Airways, said in a statement.

Jet said it suffered a revenue loss of $7.2 million due to the impact of Iceland’s volcanic ash eruptions in April, which hit air travel globally.

In the quarter, international operations accounted for 56 per cent of total revenues and the airline achieved a seat load factor of 80.1 per cent compared with 76.5 per cent a year earlier.

Jet carried 3.55 million passengers in the quarter, up 37 per cent in the same period a year earlier.

The airline forecast a revival in demand for business class seats as India's economy grows strongly.

Jet shares fell 2.26 per cent or Rs14.2 to Rs614.1 ahead of the earnings announcement.

Jet operates a fleet of 89 aircraft and flies to 66 destinations in India and abroad.

India’s airline sector has been one of the most vibrant symbols of the country’s economic progress.

The sector, which was hit by soaring fuel prices and the global slowdown last year, has been recovering in line with a rebounding Indian economy.

The economy is projected to grow by 8.5 per cent this financial year to March 2011.

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