Jet Airways, one of the leading full-fledged carriers of India, is on the track of a turnaround. It is one of the most efficient service providers of the country and serves more than 70 destinations all across the globe with over 3000 weekly flights. This carrier recently entered into an equity partnership with the Etihad Airways and is now getting the benefits of cost synergies. Now, travellers can book comparatively cheaper Chennai Delhi flights with the carrier, which may commence operations on new routes also, as the travel pattern in the country is changing drastically.
A few decades back, air travel was limited to a small section of the society and people used this mode of transportation to go from one country to another. However, in the past few years, domestic travel increased significantly that included metro cities, but as per recent statistics, small cities are emerging as most travelled destinations. The increased in traffic has shown a positive impact on balance sheets of all the carriers. Jet Airways is also one of the beneficiaries that showed consistency in the quarter 1 and 2 report regarding revenues. As far as quarter 3 is concerned, its officials are expecting a similar performance because of the crude oil benefits. A reduction in the Aviation Turbine Fuel (ATF) in the peak season is blessing for these airlines operating on thin profit margins. An official from the carrier said that most people book flight tickets in advance, and so far numbers are looking encouraging for this quarter.
In the second quarter results of this year, the airline broke the trend and posted profits for of INR 70 crores after 2012. It also managed to consolidate its losses by around 96 per cent in the third quarter, which is more than 750 crores in the previous year. In order to convert these figures into profits, the airline is focusing on cost benefits along with improving overall heads. Approval of fund raising by issuing redeemable preference shares is another vital step taken by the carrier in recent days. Now, it can raise around $300 million in order to meet its expansion or restructuring plans. It has recently announced a single brand strategy, and may soon start operating JetLite and Jet Konnect under the name Jet Airways.