New Delhi: India’s Jet Airways Ltd said on Saturday its December quarter net profit rose more than seven times, with sharply lower fuel costs helping the carrier post a third consecutive quarterly gain following a series of losses.

Jet, India’s second-largest carrier by market share, said net profit in the October-December period rose to Rs4.67 billion (Dh253.8 million, $68.88 million) from Rs631.1 million a year earlier, marking a record high quarterly profit.

The airline’s fuel expenses dropped by 27 per cent in the period, its fiscal third quarter. Total income from operations grew by 8 per cent to Rs54.44 billion aided by a 20 per cent surge in passenger traffic, the company said in a statement.

“Our strong operational performance resulting in record profit demonstrates the progress we continue to make in our turnaround plan,” CEO Cramer Ball said in a statement.

Despite rapidly rising demand for air travel in India, Jet, which is 24 per cent-owned by Abu Dhabi’s Etihad, has not made an annual profit since 2007, dragged into the red by high operating costs and fierce competition for passenger fares.

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, in November raised Rs30.1 billion through an initial public offering of shares, valuing the carrier at around $4 billion (Dh14.7 billion).

“The competitive and structural challenges in the Indian aviation market continue to put pressure on our yields. In addressing these, we will focus on cost reduction and leveraging the commercial and operational synergies through our partnership with Etihad Airways,” Ball said.

In December, Jet Airways announced Ball’s resignation effective February 29 to “pursue a new opportunity in Europe for family reasons.” Ball will join Italy’s national airline Alitalia in March. Etihad owns a 49 per cent stake in the Italian airline.