NEW DELHI: Struggling Jet Airways, one of India’s biggest carriers, reported yesterday a quarterly profit for the first time in two years, boosted by a one-off gain from the sale of a frequent-flyer scheme.
The Indian carrier, in which fast-growing Gulf airline Etihad Airways has bought a 24-percent stake, remained in the red when the sale proceeds were stripped out, but the airline still improved its operating performance markedly.
Jet announced a Rs698m ($11.3m) net profit for the second-financial quarter to September in contrast with a Rs8.9bn net loss in the same year-ago period.
“I am extremely pleased by the progress that is evident across several areas,” Jet Airways Chief Executive Cramer Ball, known as a turnaround specialist, said.
The publicly traded airline, which last reported a quarterly profit in 2012, has been seeking to pilot its way back to profitability in India’s congested skies.
While India’s passenger aviation market is one of the fastest-growing globally, cut-throat fare wars and too many carriers mean most of the country’s airlines are losing money, analysts say.
Stripping out the Rs3.05bn earnings from the sale of its frequent flyer scheme, Jet lost Rs2.35bn, said the statement released after financial markets closed. But this was still a vast improvement from the airline’s year-earlier loss.
“This is in keeping with our three-year turnaround plan,” Jet’s chief executive said.
Wind turbine giant Vestas generates huge profits
COPENHAGEN: The world’s leading wind turbine maker, Danish group Vestas Wind Systems, reported yesterday it had swung into profit and now sees a brighter outlook for 2014.
Emerging from more than two years of losses under the guidance of new Chief Executive Anders Runevad, the firm said it is enjoying strong demand.
“The demand for renewable energy continues to be strong in both mature and emerging markets and amongst renewable energy sources, wind energy is generally regarded as the most competitive,” the company said in a statement.
The group said it expects the annual operating margin before special items to be between seven and eight percent this year, compared with a six percent estimate in August, when it was raised from five percent.
Revenue is now seen at ¤6.4 to ¤7bn ($7.9 to $8.9bn) this year, compared with a six billion euro target in August.
Agencies
