Jet Airways has reported an operating profit of INR 11,686 million (approx £135 million) with a 16 per cent upsurge in passengers for FY12, delivering further ‘Eastern promise’ to the sluggish aviation sector.
With a system wide seat factor increase from 78 to 83 per cent for the final quarter (year on year), the Indian market leader has continued in its robust trajectory despite high fuel costs and the depreciation of the Rupee. International traffic grew by 26 per cent in the fourth quarter compared to the same period last year, generating 56 per cent of total revenues. Domestic traffic grew by 22 per cent compared to an industry average of just seven per cent.
The success has partly been attributable to close monitoring of costs and network rationalisation. The airline’s world class level of service and unrivalled in-flight product are other key contributing factors to the ongoing success.
The Middle East routes continue to be a primary driver for FY13 with Jet Airways having introduced a fourth daily service between Mumbai and Dubai in May, and a second frequency four times weekly to Kuwait effective June 2012. The UK continues to feed other key international destinations besides Mumbai, Delhi and domestic India - namely Bangkok, Dhaka and Kathmandu.
Jet Airways has also consolidated its low cost product under the JetKonnect brand. The outlook on the bottom line remains positive with initiatives such as enhancing ancillary revenues, discontinuing loss making routes and the sale of aircraft.
“In the current climate of rapid change in market dynamics, our focus remains on enhancing the guest’s experience through creative marketing initiatives and social media tools. Jet Airways has established itself as a prestigious brand in a relatively short period of time on account of the warmth of its service and quality of its in-flight product, a testament to our commitment to putting the customer first,” commented Lydia Nazareth, General Manager for the UK and Ireland, Jet Airways.