Singapore's Jetstar Asia Part 1: record profitability achieved as interline, codeshare traffic grows

Jetstar Asia is focusing on further growing interline and codeshare traffic while maintaining a very disciplined approach to capacity expansion. The Singapore-based LCC has not grown its fleet over the last three years and again is planning not to add any aircraft in 2017.

Jetstar Asia is now enjoying its highest level of profitability in its 12-year history, despite extremely competitive market conditions. Cost controls, lower fuel prices and surging traffic from full service airline partners, which generate significantly higher average yields, have boosted Jetstar Asia's outlook.

However, Jetstar Asia is still not yet ready to commit to expansion, recognising that Singapore's short haul market still suffers from overcapacity. The overcapacity situation could worsen in 2017, as other LCCs expand rapidly. Jetstar Asia is seeking to reduce its exposure to competing with LCCs further in the point-to-point market by attracting even more traffic from full service partners.