Jet Airways, ANA, Skymark and Hainan Airlines report improved financial results

Jet Airways shares gained 1.2% on Friday. The carrier, upon the release of its financial results for the three months ended 30-Sep-2010, stated it expects yields and traffic to continue to improve adding that the “buoyancy in Indian domestic travel market has been fuelled by a healthy GDP growth and increased business confidence”.

The carrier continued: “Along with the ensuing peak season in Q3 will help airlines to improve yields from hereon. The industry is operating at seat factor in the high seventies reflecting the growing demand in the market. Out international operations continue to achieve seat factor of around 80%. We expect the yields to improve further on account of the peak season.”

In the Sep-2010 quarter, revenues increased 32% to USD795 million and passenger numbers increased 20%, with EBITDAR increasing 220% to USD165 million of which USD155 million was attributable to Jet Airways and USD10 million to JetLite. Loss before tax stood at USD11 million, compared with USD120 million in the previous corresponding period, with Jet Airways reporting a USD2.8 million profit and Jetlite a USD14.1 million loss. Both these represented improved results from the previous corresponding period. 

ANA returns to profitability and raises forecast

ANA shares increased 0.3% on Friday as the carrier returned to profitability in the six months ended Sep-2010 and upgraded its net profit forecast for the 12 months ended Mar-2011 by 20% - from JPY5 billlion to JPY6 billion (USD74 million).  The carrier also raised its forecast for operating revenue forecast by 12% to USD17 billion and its operating profit forecast to USD864 million. 

In the six months ended Sep-2010, the carrier witnessed a 12% increase in revenue to USD8,446 million with an operating profit of USD701 million (compared to a loss of USD348.2 million in p-c-p) and a net profit of USD164 million (compared with a loss of USD313.3 million in p-c-p). Passenger numbers increased 5% to 23.6 million.

The carrier commented: “Strong demand helped the air transportation business to deliver significantly increased revenues compared to the same period the previous year, which was adversely affected by the global recession and the H1N1 influenza.”

Skymark expects profit growth in FY2011

Also in Japan and Skymark Airlines shares declined 4.0%. The carrier, upon the release of its financial results for the six months ended Sep-2010, stated it expects to report a 109% increase in net profit to USD68 million in FY2011, with a recurring profit of USD107 million (+194% year-on-year) and an operating profit of USD112 million (+190%) on revenues of USD698 million (+36%).

The carrier reported a net profit of USD34 million in the six months ended 30-Sep-2010 (+38.5%) with an operating profit of USD72.7 million (+168%) and a "recurring profit" of USD34 million (+38.5%) on revenues of USD329 million (+26.6%).

Hainan Airlines reports strong profit growth

Hainan Airlines shares gained 4.5% on Friday. The carrier reported a 33% increase in operating revenues to USD910 million in the three months ended Sep-2010 with a 687% jump in operating profit to USD213 million. Net profit strengthened 598% to USD183 million.

Asia Pacific selected airlines daily share price movements (% change):  29-Oct-2010