India's Jet Airways on Tuesday posted an unexpected net profit after two quarters of losses, helped by its growing international operations and cost cutting measures.
Total expenses represented 82 percent of net sales in the June quarter, down from 96 percent a year ago, as Jet raised fares to offset rising fuel costs.
Domestic aviation turbine fuel prices have risen by nearly half since the start of the year on the back of high crude oil. Indian jet fuel, among the most expensive globally, makes up 45 percent of an airline's operating costs.
India has set up a committee to recommend measures to help the domestic airline sector deal with losses that may double to nearly USD$2 billion in 2008/09.
Jet Airways, controlled by billionaire chairman Naresh Goyal, said net profit in the June quarter was INR1.43 billion rupees (USD$34 million), up from INR308.8 million a year earlier.
Net sales rose to INR28.67 billion from INR18.07 billion.
Jet Airways, which has been expanding international operations and wants to get half its revenue from overseas by 2010, said in June it would put its international expansion on hold until the end of next year, when it will take delivery of new aircraft.
It also trimmed several loss-making domestic routes, and shelved plans for its subsidiary, discount carrier JetLite, to fly to the Middle East and southeast Asia.
Jet Airways, which posted a loss of INR2.53 billion for the year to March, had said it expected the next few quarters to be very challenging. It has delayed plans to raise USD$400 million in a rights issue because of the volatile market environment.
Boeing last week raised its aircraft order forecast for India by 10 percent to 1,001 aircraft until 2027.
