Oct. 18 (Bloomberg) -- Jet Airways (India) Ltd., the nation's largest domestic carrier, expects to earn profits on its U.S. flights in the first year of operations, as travel demand between the two countries increases.

Jet Airways is filling more than 70 percent of seats since it became the first private carrier from India to fly to the U.S. in August, Naresh Goyal, the airline's chairman, said in an interview from New York. Jet Airways, which now flies to Newark from Mumbai, plans to start flights from New Delhi to New York's John F. Kennedy airport later this month, he said.

Economic expansion in India, the world's second-fastest growing major economy, has attracted investments from General Motors Corp., McDonald's Corp. and other U.S. companies, spurring business travel. Travel demand from the 2.5 million Indian software professionals, students and families in the U.S. is also growing.

``We are getting an excellent response,'' Goyal said. ``Our future bookings are showing we are doing extremely well.''

India and the U.S. in April 2005 signed an air services agreement scrapping most travel restrictions between the two countries and allowing Continental Airlines Inc., Air India Ltd. and other carriers to increase flights.

Kingfisher Airlines Ltd., the only Indian carrier to order the Airbus SAS A380, the world's biggest passenger plane, also plans to start flights to the U.S.

Shanghai, San Francisco

Jet Airways will fly to Shanghai from Mumbai in February and plans to start flights to San Francisco, Goyal said.

The carrier won't delay a proposed $400 million share sale in India because of the turmoil in the stock market yesterday, Goyal said. India's benchmark Sensex index fell 1.8 percent yesterday after earlier falling as much as 10 percent, forcing a shutdown of trading in the country for one hour.

``We decided for January and we are continuing with that. There is no change in our program,'' said Goyal, who owns 80 percent of the airline.

Jet Airways fell 1.4 percent in Mumbai yesterday. It has gained 48 percent this year.

The carrier will also pass on higher fuel costs -- the carrier's biggest expense -- to passengers as crude oil surged to a record earlier this week, Goyal said.

To contact the reporters on this story: Catherine Yang in Hong Kong at cyyang@bloomberg.net; Anand Krishnamoorthy in Singapore at anandk@bloomberg.net

Last Updated: October 17, 2007 21:51 EDT