Revenue plunged 26.9% year-over-year to INR23.81 billion as the pilot work stoppage in mid-September cost Jet some INR800 million (ATWOnline, Sept. 15). It said yesterday that around 1,300 domestic flights and 200 international flights were cancelled. However, the company’s second-quarter EBITDAR reversed to a INR2.46 billion profit from a INR1.9 billion loss in the year-ago period and it said the improvement “suggests that operationally the performance has stabilized and the impact of initiatives like rationalization of capacity and our cost reduction program have started to show results.”

Jet and its JetLite subsidiary flew 5.32 billion system RPKs during the quarter, down 4.6%, against a 17.9% cut in capacity to 6.91 billion ASKs. Load factor soared 10.7 points to 77% on a 1.2% dip in passenger numbers to 2.8 million. “The domestic air traffic market has started to show some signs of recovery,” the company said, pointing to a 24% year-over-year increase in traffic across the Indian industry. Capacity rose 5% year-over-year, but a decline in average yield and a 17.4% increase in fuel prices from the fiscal first quarter to the second mitigated improvement to the bottom line, it said.

Jet Airways currently operates 85 aircraft, 27 of which (17 737s and 10 ATRs), fly under the company’s no-frills Jet Airways Konnect brand. JetLite has 23 planes and suffered a INR1.26 billion second-quarter loss, improved from a INR2.73 billion deficit in the quarter ended Sept. 30, 2008.

The outlook is somewhat brighter as the Indian market enters its “peak season,” Jet said. “Over the last few weeks, airlines have started raising fares and these increases have not shown any negative impact on traffic. We do expect yield improvements with the peak season as well as premium demand revival in the next few quarters, whilst our focus will continue to be on maximizing revenues through higher seat factor levels.”