Jet Airways Turns a Surprise Profit
Jet Airways Boeing 737-800
Jet Airways, India’s largest airline, turned a profit in the 2nd quarter of this year surprising many in light of India’s struggling airline industry woes.
Jet earned a profit of $4.4 million (247 million rupees) in the period of April-June. It’s the carrier’s first profit in 6 quarters. The airline lost $22 million (1.2 billion rupees) last year in comparison.
‘Jet’s shares, valued at about $580 million, closed up 0.77 percent at 374.30 rupees, compared with a 0.15 percent fall on the 30-share benchmark index, after rising as much as 4.6 percent on the National Stock Exchange.’
State run airline Air India is buried in debt and labor issues as is Kingfisher, which is now operating less than a quarter of its fleet.
Time will tell if this bodes well for India’s aviation sector. State taxes are about 30 percent and jet fuel now accounts for half the cost of airlines operating in that country.
Image: Flickr [dbanik]
Category: Airnation
Half of airlines’ expenses is all due to fuel… WOW thats’s crazy. Was this also true 40/50 years ago??
Roughly for carrying 120 Pax you burn apprx 2000ltr atf cast arround 1lac. Revenue earned is 3.5 to 4.5 lac for flight time of 2 hours. Other charges and ops cost also apprx 1 lac. Then why u loose dude. Find the loop hole.