Jet Airways posts Q1 net profit, beats f'cast

MUMBAI (Reuters) - Jet Airways Ltd, India's top private carrier, on Tuesday posted an unexpected net profit after two quarters of losses, helped by its growing international operations and cost cutting measures.

Total expenses represented 82 percent of net sales in the June quarter, down from 96 percent a year ago, as Jet raised fares to offset rising fuel costs.

Domestic aviation turbine fuel prices have risen by nearly half since the start of the year on the back of high crude oil. Indian jet fuel, among the most expensive globally, makes up 45 percent of an airline's operating costs.

India has set up a committee to recommend measures to help the domestic airline sector deal with losses that may double to nearly $2 billion in 2008/09.

Jet Airways, controlled by billionaire chairman Naresh Goyal, said net profit in the June quarter was 1.43 billion rupees ($34 million), up from 308.8 million rupees a year earlier.

Net sales rose to 28.67 billion rupees from 18.07 billion.

A Reuters poll had forecast a net loss of 3.77 billion rupees on net sales of 30.05 billion.

Ahead of the earnings announcement, Jet shares ended 1.8 percent lower at 439.85 rupees in a Mumbai market that fell 3.9 percent.

Jet Airways, which has been expanding international operations and wants to get half its revenue from overseas by 2010, said in June it would put its international expansion on hold until the end of next year, when it will take delivery of new aircraft.