Jet Airways (India) Ltd. posted a net profit of 529.9 million rupees ($10.5 million) during the January-March quarter.

Published: 26 May 2009

Jet Airways (India) Ltd. posted a net profit of 529.9 million rupees ($10.5 million) during the January-March quarter.

The company had posted a loss of $55.1 million for the same period last year.

The Mumbai-based airline, which flew 2.54 million passengers during the quarter compared with 3.17 million a year earlier, garnered revenue of $506 million, down by 8.2 percent. Domestic operations accounted for 43.9 percent.

Jet Airways said it has already begun cost-cutting measures in a move to stave off the effects of falling ticket sales and higher costs because of a weak rupee. Apart from cutting salaries of senior management personnel and reducing by 22 percent the number of aircraft deployed, it has leased out nine long-haul planes to overseas carriers such as Bahrain's Gulf Air in a move to increase revenue. It is also restructuring its lease agreements and debt taken to acquire aircraft as part of steps to cut costs.

“The global economic environment, coupled with economic realities of the airline industry in India requires exceptional efforts to return to break-even and profitability. We expect the year ahead to be challenging in terms of continued sluggish demand for both domestic and international operations. This is more so on premium segments, thus putting pressure on overall yields,” stated the airline.