Jet Airways Reports First Profit Since 2007

Jet Airways has reported its first annual profit since 2007, a year ahead of schedule under its 2014 turnaround plan.

The carrier, part-owned by Etihad Airways, said lower fuel costs and higher aircraft use helped it swing to a profit in the year ending March 31 but warned that growing domestic competition was putting pressure on yields.

For the year, its net profit was INR12.12 billion rupees (USD$181 million) compared with a loss of INR20.97 billion the previous year, the company said in a statement.

Jet reported a profit of INR4.26 billion rupees for its fourth quarter to the end of March, compared with a loss of INR18.03 billion in same quarter a year earlier.

It lowered its debt by INR16.8 billion rupees during the year but did not say what the latest debt level was.

The airline would continue to focus on strengthening its balance sheet to sustain growth, Chairman Naresh Goyal said in the statement, although he said competitive and structural challenges remained.

"The introduction of capacity and the enhanced competitive scenario is creating a constant pressure on yields," Goyal said.

Jet competes with state-run Air India and Vistara - a joint venture of Tata Group and Singapore Airlines - in the full-service category in a domestic market dominated by low-cost carriers.

IndiGo is India's top carrier with 38.7 percent of the market as of April.

Jet Airways' market share was 18.9 percent in April, down from 23.1 percent a year ago, according to government data.