Jet Airways Q2 net loss jumps eight-fold to Rs891 cr
24 October 2013
Jet Airways, India's second-biggest carrier by domestic market share, has reported an eight-fold jump in losses at Rs891 crore in the second quarter of the current financial year (July-September 2013-14), due mainly to the depreciation in the value of the rupee and poor market conditions.
The Naresh Goyal-led airline, which sold 24-per cent stake to UAE carrier Etihad in April this year, had reported loss of Rs99.7 crore in the year-ago quarter.
Net income, however, rose marginally to Rs4,194.7 crore in the quarter ended 30 September 2013, from Rs4,137.63 crore a year ago, Jet Airways said in a stock exchange filing.
Consolidated net loss of Jet Airways and JetLite during the quarter was even higher at Rs998.5 crore.
Jet Airways attributed the fall in income to the lean season and the general economic slowdown. High fuel prices and increases in airport charges at select domestic airports have also added to cost pressures, the airline said.
"Domestic aviation industry witnessed increasing cost challenges, mainly due to rupee depreciation, high fuel prices and increase in airport charges in certain stations putting pressure on the bottom line," Jet Airways chief executive Garry Toomey said in its release.
Jet Airways said it was awaiting final regulatory approvals for the Etihad deal. The cabinet had, earlier this month, approved the agreement that was expected to help Jet break out of a cycle of continuing losses.
All of India's five airlines, with the exception of unlisted IndiGo, the biggest carrier by local market share, are losing money.