Jet Airways swings to quarterly profit on one-off gain

MUMBAI: Jet Airways swung to a net profit in July-September after six straight loss-making quarters as funds from the sale of its privilege programme and profit from sale and leaseback of planes aided an improved operating performance. The airline posted a net profit of Rs 69.82 crore compared to a loss of Rs 891.01 crore in the same period last year.

Sales increased 16% to Rs 4,402.76 crore. Jet Airways had last year sold its privilege programme to its strategic partner Etihad Airways as part of a deal under which the Abu-Dhabi based carrier also bought 24% stake in Jet for Rs 2,059 crore.

Out of the slump sale of the privilege programme at Rs 1,193.78 crore, a total of Rs 305.01 crore was recognised as surplus in the exceptional items and Rs 102.31 crore in other income, the carrier said in a note.

The airline's profit from sale and leaseback of planes also increased to Rs 243.47 crore, from Rs 73.07 crore, also helping profit to increase. The improvement in numbers shows positive benefits from the its recently forged partnership with Etihad.