Fuel costs, rupee push Jet Airways to third consecutive quarterly loss 

Indian airline Jet Airways posted its third consecutive quarterly loss in the quarter ended September 30, with rupee depreciation and high fuel costs inflating expenses.

NEW DELHI: Indian airline Jet Airways posted its third consecutive quarterly loss in the quarter ended September 30, with rupee depreciation and high fuel costs inflating expenses. On Monday, the cash-strapped company, which has been struggling to pay salaries to pilots and staff on time, announced a consolidated net loss of Rs 1,261 crore for the quarter against a profit of Rs 71 crore in the corresponding period last year. 

The airline, like its peer Indigo, saw intense margin pressure due to high aviation turbine fuel (ATF) prices, with fuel expenses spiking by 58.6 per cent to Rs 2,419.76 crore during the quarter. The number had stood at Rs 1,525.66 crore during the same period last year. Indigo, for its part, has posted its first loss since becoming a listed firm three years ago. Jet Airways’ total sales however, grew at 6.9 per cent to Rs 6,363 crore. 

Jet Airways’ chief executive Vinay Dube said in a statement that the airline was “in the midst of turning the ship around”. 

The airline is on track to realising most of the outcomes that were outlined as part of the turnaround strategy announced last quarter, said Dube, including cost savings in excess of Rs 2,000 crore over the next two years via strategic initiatives. Other cost-saving initiatives will include sub-fleet simplification, and reduction in sales and distribution cost along with maintenance cost.

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