Shares of the company closed at Rs 365.80, down by 9.05% on the Bombay Stock Exchange on Tuesday.
The results for the quarter were also impacted by the five days of pilots strike (September 8-12) which resulted in close to 1,300 domestic flights and 200 international flights being cancelled. This led to a loss of revenue to the tune of Rs 80 crore ($16 million). This, together with the fact that fuel cost increased 17.4% during this quarter compared to the April to June quarter had an additional cost impact of Rs 108.3 crore ($22.5 million), added Datta. However, he seemed confident of demand and yields per seat rising in the next six months.
Giovanni Bisignani, director general and CEO at IATA (International Air Transport Association), had earlier told FE that he expects losses from commercial airline operations worldwide in 2009 to each $11 billion and the losses of the industry would account for 11% of the global losses. Bisignani said, The beginning of an economic upturn is now visible, particularly in Asia, to the benefit of travel and freight volumes, yields are much weaker than anticipated and oil prices higher. He maintained that the worst is over, but recovery will be a long story.
Jet achieved a seat factor of 75% in the current quarter on Jet Airways Konnect (JAK), its single class no-frills service introduced from May 2009. As of date, the companys 27 aircraft (17 B737 and 10 ATR aircraft) which represents close to two-thirds of its capacity are being operated under Jet Airways Konnect brand.