Airliners-India.com

me111993 · Member Joined: 04 Sep 2009 Posts: 3225 Location: MAA/AMD

After seeing tough days, Jet Airways, India’s premier airlines company, could well be close to breaking even and reporting a profit, reckon analysts. The company’s strategy of route rationalisation and focussing on its low-cost arm, Jet Konnect, has seen the company attain the staggering growth numbers, its largest in the last three years. For the month of November, Jet Airwas saw a 33% increase in passenger traffic in the domestic sector while it recorded a 19% growth in the international segment. Here, the industry average for the domestic sector was 29%. This was the first time since the past eight months that the company has seen a positive growth in passenger numbers.
Going ahead, analysts at Bank of America Merrill Lynch reckon that the company would see a sustained 15% passenger growth till 2000-11. Moreover, Jet has also seen a 20% plus improvement in yields in the current quarter over the previous quarter.
Analysts expect yields to remain firm on the back of curtailed supply. It is expected that yields to rise by 10% to Rs6.22 revenue per passenger kilometer (RPK) in the next two years up from the 8.5% at the moment and international yields to rise by 6% to Rs3.2/RPK in 2000-11 from the 5% levels at the moment.

me111993
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