NEW DELHI: The continuing rise in fuel prices driven by the global increase in the value of crude oil, has resulted in airlines taking a beating.
Naresh Goyal-promoted Jet Airways on Wednesday reported a standalone net loss of Rs 1,036 crore in the March quarter due to the sharp rise in fuel costs and a depreciating rupee. The company had reported a net profit of Rs 602.42 crore in the year-ago period.
“Financial performance during the quarter was weaker due to the continuing increase in the price of Brent fuel without a corresponding increase in airfares, as well as mark-to-market adjustments due to a weaker rupee,” Jet Airways chief executive officer Vinay Dube said in a statement.
Meanwhile, the carrier’s total income also declined by 3.44 per cent to Rs 6,055 crore during the quarter, against Rs 6,271.21 crore in the same quarter last year, it said in a regulatory filing.
The main component of the hit to margins however, remained high fuel rates. According to the company, fuel expenses rose by a sharp 31 per cent to Rs 2,063.34 crore, against Rs 1,282.41 crore.
For the entire financial year 2017-18, the airline reported a standalone net loss of Rs 767.62 crore, against a net profit of Rs 1,482.52 crore record the previous year, the company said.
The company’s CEO also said Jet Airways is focused on undertaking steps to create a healthier business by lowering costs, increasing operational reliability etc.