Jet Airways Posts Third Quarterly Loss On Fuel Costs
Losses of Jet Airways came in at 12.97 billion rupees ($178.01 million) for the quarter ended Sept. 30, compared with a profit of 496.3 million rupees a year earlier
Jet Airways Ltd, India's biggest full-service carrier, posted its third straight quarterly loss today, hurt by higher fuel expenses.
A combination of rising oil prices, high fuel taxes, a weak rupee, low fares and intense competition have pulled down airline profitability in the world's fastest-growing aviation market which is growing at 20 percent annually.
Losses came in at 12.97 billion rupees ($178.01 million) for the quarter ended Sept. 30, compared with a profit of 496.3 million rupees a year earlier. Fuel expenses jumped 58.6 percent to 24.20 billion rupees, while revenue from operations climbed 9.5 percent.
Jet Airways, part-owned by Etihad Airways, has been facing financial difficulties but has said it can cut costs and inject funds to keep flying. The company said in August it would cut costs in excess of 20 billion rupees in two years and planned to raise funds by selling a stake in its frequent flyer programme.
Jet had a negative net worth as on Sept. 30, with current liabilities exceeding current assets, the airline said. Earlier this month, a media report said Tata Group is in talks to buy a majority stake in the airline and its frequent flyer programme, JetPrivilege.
Tata Group aims to buy the 51 percent stake owned by founder Naresh Goyal and Etihad's 24 percent holding, the report added.