Jet Airways increases yields by 20%

MUMBAI: Jet Airways, India's largest private carrier, has increased its yields by 20% during the first 14 days of November as against the same period in October as mass cancellation of flights by rival Kingfisher Airlines pushed up air fares, its chief operating officer Sudheer Raghavan said on a conference call with aviation analysts on Monday.

"We feel that there will not be any undue pressure on the yields in the coming months," he said. Airlines have been facing severe pressure on their yields - average revenue per mile per paying passenger - due to rising jet fuel prices and economic uncertainties.

Jet Airways has reported a record loss of Rs 714 crore during the second quarter. The airline is renegotiating aircraft leasing agreements and reviewing IT costs which could lead to rationalisation of manpower and better utilisation of aircraft, Raghavan said.

"We plan to cut cost by 5-10%. This ongoing exercise will help bring expenses at par with other low-cost carriers. We will get into a cost structure that is affordable because 75% of the flying population in India still uses low-cost carriers," he said.

A substantial part of the airline's expenditure goes into bookings done through global distribution system and commission for agents. This will be brought down by focusing on achieving greater penetration through website bookings, he added.