Jet Airways posts second consecutive quarterly profit

MUMBAI (Reuters) - Indian carrier Jet Airways Ltd said on Wednesday its net profit in the September quarter rose by a quarter, its second consecutive quarterly profit after a string of losses, bolstered by sharply lower fuel cost.

Jet, India's second largest carrier by market share, said net profit in the July-September period rose to 875.9 million rupees ($13.50 million) from 698.2 million rupees a year ago.

The airline's fuel expenses dropped by nearly a third in the period, its fiscal second quarter. Total income from operations grew by 10 percent to 52.6 billion rupees aided by a 20 percent surge in passenger traffic, the company said in a statement.

Despite rapidly rising demand for air travel in India, Jet has not made an annual profit since 2007, dragged into the red by high operating costs and fierce competition for passenger fares.

Jet, 24 percent-owned by Abu Dhabi's Etihad, said last year it expects to make a full-year profit in 2017.

The outlook for Indian airlines has improved due to a drop in fuel prices, which accounts for bulk of their operating expenses, and growing passenger numbers in one of the world's fastest-growing yet fiercely competitive aviation markets.

Enthused by the earnings prospects, InterGlobe Aviation Ltd, owner of Indian budget airline IndiGo, is raising as much as $464 million through an initial public offering of shares.

The IndiGo share sale has attracted strong investor demand, receiving bids for nearly 47 million shares, or 1.55 times the number of shares on offer by end of the trade on second day of bookbuilding. The offer closes on Thursday.

($1 = 64.8634 Indian rupees)

(Reporting by Himank Sharma; Editing by Sumeet Chatterjee and Adrian Croft)