Jet Airways back in the earnings sweet spot
It has been a long time coming, but India’s Jet Airways is back in the profit zone, and the outlook for the next couple of quarters looks strong, as demand soars and oil prices sink. The only question mark is whether Indian airlines will exercise the same capacity discipline that brought them to this point after two years of deep losses. Jet Airways stated “domestic air traffic has seen a reviving trend over the last few months, and airlines have achieved high levels of seat factors as well as yield growth”. Industry traffic grew by 21% year-on-year in the three months ended 31-Mar-2010.
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