Jet Airways loss soars on fuel cost, rupee fall

Written by fe Bureau | Mumbai | Updated: Feb 8 2014, 10:07am hrs
Jet Airways on Friday reported a net loss fourth straight quarterly loss of about R268 crore in the December quarter mainly due to high fuel prices, rupee depreciation and increase in airport charges. The company had posted a profit of R85 crore in the same quarter last year.

During the period, the airline reported a 7.8% year-on-year increase in its total income from operations to about R4,536 crore.

The airline, however, saw expenses rising by 23% y-o-y to R4,762 crore due to increase in fuel expenses, aircraft lease rentals, and other expenses.

After the equity infusion by Etihad, Jet has reduced its debt from R12,494.70 crore as of September 2013 to R10,895.20 crore in December 2013. This will help lower Jets interest costs going forward, a company statement said.

Giving the outlook for the next quarter, Jet Airways said it plans to replace high cost debt with cheaper debt to reduce interest costs and lease or sell surplus aircraft in coming quarter.

The airline added it expects its fourth quarter to be muted on account of both yields and seat factors, while the depreciation of rupee against dollar continues to be a cause of concern.

Shares of Jet Airways fell 2.54% to close at Rs 228.50 on Friday on the BSE. The airline however announced its results after the closure of the market hours.