Jetstar Asia reports Profit Ahead of Schedule

Jetstar Asia and its sister airline Valuair, have reported a 20% increase in revenue, a 4% rise in passenger load factor to more than 75% and about a 20% jump in passenger carriage for the year ended 31 March 2008.

Attributing its achievement to prudent cost and resource management, as well as healthy passenger revenue and load factors in the face of rising fuel costs, Jetstar Asia’s Chief Executive Officer Ms Chong Phit Lian said, “With these measures, we have streamlined our operations, optimised the use of our resources and increased our loads and ticket sales.”

The airline sells 70% of its tickets via its website with the rest through travel agents and call centres.

While fuel accounts for 40% of the group's expenses in the year just ended, Jetstar Asia is confident that it is on the path to sustainable growth. Ms Chong said, “Our focus will continue to be on increasing utilisation, growing revenue and broadening the earnings base.' 

Jetstar Asia flew its inaugural flight to Hong Kong on 13 December 2004 and acquired Valuair on 22 July 2005. Both carriers now operate a total of seven aircrafts and 126 weekly flights to 14 Asian destinations in 9 countries, including the recently added Kuala Lumpur, Macau and Medan. It has also added a fourth daily Valuair service to Jakarta and is allowing passengers on all Jakarta flights to change their flight departure timing with a nominal fee.

Ms Chong who took the helm at Jetstar Asia two years ago added, “When I joined the group in March 2006, I forecast that we would turn in a profit in three years. But we have achieved profitability ahead of schedule in just two years. This is a testament to the team we have at Jetstar Asia and the fact that the market is more aware of and receptive to our product.”

The airlines offer travellers free online seat selection, comfortable leather seats and a generous 20-kg luggage allowance. Both Jetstar Asia and Valuair operate from Changi Airport Terminal One in Singapore.

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