April 19, 2024 09:55 (IST)
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Jet Airways records 60 pct improvement in operating performance in FY15
New Delhi, May 29 (IBNS): Jet Airways Group on Friday announced a 60% improvement in operating performance for the Financial Year 2014-15, just one year into its three-year turnaround plan.
Naresh Goyal, Chairman, Jet Airways, said: “FY15 was an encouraging year when we set out to change the fundamentals of this business, allowing us to deliver a significant improvement in our net result. This demonstrates unequivocally that the three-year turnaround plan we put in place last year is on track.”
“While the Indian aviation market is still subject to ongoing structural challenges and robust competition is placing pressure on yields, we will continue to progress by focusing on delivering an enhanced experience for our guests and improving efficiency throughout the business," Goyal said.
The improvement in performance is largely attributable to the implementation of a single brand and full service strategy across the domestic operation. The year also saw the optimisation of the network to ensure better integration between domestic and international operations, an increased focus on premium traffic and improved aircraft utilisation.
Cargo’s strong growth continued in FY15, particularly on the domestic network which experienced an 11 percentage point increase in load factor. Jet Airways continues to focus on developing the booming e-commerce sector and enhancing its customer offering with the launch of Fast-Track, an airport-to-airport express product.
Cramer Ball, CEO, Jet Airways said: “We have made significant progress on all key fronts of the business, and achieved substantial growth in all of our major key performance indicators in a turbulent and competitive business environment. The roll-out of a consistent, single brand full service product across our domestic network was supported by our 'Guest First' approach to customer service and hospitality, which is attracting new customers.”
Continuing the positive trend from Q3, the final quarter of FY15 saw ongoing improvements in all KPIs, with total revenue up 8.6% to INR 5,398 cr from INR 4,969 in Q4 FY14. The airline recorded EBITDA of INR 89 cr compared to negative INR 470 cr in Q4 FY14.
Ball said: “FY15 was the first full year of our strategic partnership with Etihad Airways, which has opened up strong, new synergies across our business. Jet Airways now offers enhanced global connectivity along with Etihad Airways and other Etihad Airways Partner airlines such as airberlin and Alitalia, helping to deliver an increase in our international passenger traffic.”
During the last financial year, Jet Airways enhanced international connectivity from its hubs in Mumbai and Delhi with addition of Paris and Ho Chi Minh City as new destinations. It also launched additional flights to Abu Dhabi, Dubai, Doha and Dammam in the Gulf region. With 574 weekly return flights from 12 Indian cities, Jet Airways operates more flights to the Gulf region than any Indian carrier.
Jet Airways and Etihad Airways together operate over 4,300 international flights a month connecting India to the world via the Abu Dhabi gateway.
Ball concluded that, although significant progress had been made in FY15, there was still a great deal of work to be done to complete the turnaround plan and bring the airline to sustainable profitability.
“There is still much to be done, but with the continued support of our management, our employees and our shareholders, I am confident Jet Airways can achieve the objectives we laid out in our plan," he said.
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