India airline Jet Airways, a member of the Etihad Airways partnership, reported a surge in operating profit in the first quarter of the 2016-17 financial year, but warned intense competition in the air travel market would continue into the second half.
The operating profit leapt by 124 per cent to US$33 million in the three months to June end for India’s second-largest carrier, boosted by a jump in the number of passengers and revenue delivered by its Etihad connection.
Naresh Goyal, the chairman, said: "Jet Airways has strengthened its core operations and achieved better capacity utilisation and greater efficiency. We have been able to report lower non-fuel costs in spite of inflationary increases and the almost 6 per cent weakening of the Indian rupee against the US dollar."
The strategic partnership with Etihad continues to be strong, he said. Code-share traffic delivered by Etihad and its other partner airlines to Jet grew by 41 per cent, while revenue from the Etihad alliance was up by 38 per cent.
Mr Goyal, however, pointed to a tightening of aviation market conditions, which has put profits under pressure for American and European airlines. "Because of the intense competitive environment, industry yields were under pressure in the first quarter and the trend is expected to continue in the second."
13/08/16 Frank Kane/National
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The operating profit leapt by 124 per cent to US$33 million in the three months to June end for India’s second-largest carrier, boosted by a jump in the number of passengers and revenue delivered by its Etihad connection.
Naresh Goyal, the chairman, said: "Jet Airways has strengthened its core operations and achieved better capacity utilisation and greater efficiency. We have been able to report lower non-fuel costs in spite of inflationary increases and the almost 6 per cent weakening of the Indian rupee against the US dollar."
The strategic partnership with Etihad continues to be strong, he said. Code-share traffic delivered by Etihad and its other partner airlines to Jet grew by 41 per cent, while revenue from the Etihad alliance was up by 38 per cent.
Mr Goyal, however, pointed to a tightening of aviation market conditions, which has put profits under pressure for American and European airlines. "Because of the intense competitive environment, industry yields were under pressure in the first quarter and the trend is expected to continue in the second."
13/08/16 Frank Kane/National
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