Jet Airways Q2 net profit plunges 91%

India's second biggest airline by domestic market share posted a net profit of Rs 46.01 crore compared to Rs 517 crore a year earlier.

The Jet Airways Group on Thursday reported a net profit of Rs 71 crore for the second quarter (Q2) of 2017-18, backed by growth in capacity, revenues as well as accompanying reduction in non-fuel costs. In a later note, the airline said it had made a profit of Rs 190.22 crore previous year on the sale and leaseback of planes.

As per the presentation, the carrier will look to reduce maintenance expenses from January 2019 as well as bring down cost of sales and distribution and also focus on enhancing ancillary revenue by around Rs 250 crore. On the other hand, other income saw a steep decline of 59 per cent in the last quarter to Rs 131 crore from Rs 319.58 crore in year-ago period.

The fall in the profit has been attributed to the inability to offset the rise in jet fuel prices. It is expected to further boost connectivity between India and Europe.