Jet Airways Q1 Loss Narrows to Rs 217.65 cr
By ENS Economic Bureau | Published: 12th August 2014 06:00 AM |
BANGALORE: Jet Airways saw its net losses for the first quarter down 39 per cent to Rs 217.65 crore when compared to the same period last year. Topline of the Naresh Goyal-led company saw a growth of 17 per cent to Rs 4,685.64 crore.
“We are taking stringent measures to operate in an industry that continues to face tough challenges,” Goyal said.
Total passenger revenues were up 11.1% to Rs 4262.6 crore. The company that sold 24% of its stake valued at over Rs 2,000 crore to Etihad Airlines is said to have benefited as the codeshare pushed overall traffic by 157% to 1,18,253. International operations improved 86% in the first quarter.
“Our first priority in this three-year turnaround strategy has been to establish a more solid financial foundation for this airline, and in this regard, the company has already taken steps to retire high cost debt and reduce borrowing costs.”
The company also aims to save $100 million (Rs 611.5 crore) by renegotiating contracts with its vendors and suppliers.
No low-cost service from 2015
Jet Airways will be exiting low-cost services and will merge its two no-frills brands with parent full service carrier. “By the end of this year, there will be no JetLite and Jet Konnect brands and all the aircraft will have business class and economy class seats,” Naresh Goyal said.