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Jet Airways (India) has significantly pared its consolidated net loss to ₹43 crore for the second quarter ended September 30, on account of gain from the sale of its frequent flyer programme and higher passenger revenue.
The carrier had reported a net loss of ₹999 crore in the same quarter a year ago.
Revenue went up 13.7 per cent to ₹5,092 crore (₹4,480 crore).
“The operational restructuring initiatives with route and network rationalisation are already yielding dividends on the domestic and international network. The organic network expansion, coupled with enhanced global connectivity through alliances and code-shares, have also helped increase international passenger traffic,” Cramer Ball, CEO of Jet Airways, said in astatement.
In April, Jet had transferred its Jet Privilege Frequent Flyer Programme undertaking to Jet Privilege Pvt Ltd (JPPL) as a going concern on a slump sale basis for a total consideration of ₹1,193.8 crore. JPPL is a specialised loyalty and rewards management company — a joint venture between Jet and Etihad to develop, manage, operate and market the loyalty programme.
Subsequently, the company recognised a surplus of ₹305 crore during the quarter under ‘exceptional items’ and an amount of ₹102.3 crore under ‘other income’, it said in the notes to its standalone results.
Jet, which is partly owned by Etihad Airways, managed to increase code share traffic by 105 per cent to 318,000 from 155,000 passengers in the second quarter of last year. Seat factor went up by 1.2 percentage points to 78.6 per cent.
Turnaround plan On the operational front, the three-year turnaround plan includes long-term network and fleet and product developments to optimise the airline’s domestic and international operations. Jet has gone for rationalisation of routes, aircraft and airport slots. The last time Jet posted a full-year profit was in 2010-11, at ₹9.69 crore. The airline also plans to clean up the balance sheet and write down overvalued non-cash assets.
Starting December, Jet will return to its earlier practice of becoming a full-service airline, by jettisoning the low-cost brand JetKonnect.
Shares of Jet Airways ended at ₹251.45, up 3.01 per cent, against the previous close on the BSE on Friday.
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