Jet Airways, which is in a cost-cutting and restructuring mode, is likely to pare losses by around 20% for the July-September quarter of this fiscal, compared to a net loss of Rs 385 crore in the corresponding quarter of the previous financial year.

The reasons for the carrier to post better results compared to the corresponding quarter last year are many. First, ATF prices have eased to $72 a barrel this season as against over $90 a barrel in the last season. The aviation industry is estimated to have spent around Rs 4,000 crore on ATF in Q2 of FY09 with Jet spending nearly Rs 500 crore on it, during the period.

This year, there has been a dip of nearly 20%-25% dip in ATF prices, which accounts for more than a third of the operating cost to an airline. Since May this year, Jet is marketing its new offering JetKonnect network to garner better yields by offering seats at a price 15% lower than its full service, Jet Airways.

Meanwhile, the share price of the company saw a 52-week low of Rs 115.25 in March and it peaked in October at Rs 453.70, on Thursday it closed at Rs 414, down 4.66% on the BSE.

Raj Halve, principal consultant, Samara Consultant says, ?Jet might post losses, but lower than previous year. The carrier?s pilots had struck work for four days in September leading to revenue loss of $12 million, but this figure can be treated as an extraordinary item not adding up to the losses. Also, the traffic this quarter is anticipated to be better than last year?s quarter when traffic had dipped significantly (over 20%) on account of recession.

Ajay Parmar, head research, Emkay Global Financial Services adds, ?Jet will certainly get a relief in its loss figures compared to the corresponding quarter figures due to introduction of a slew of cost cutting measures by the carrier.? Jet is rationalising manpower, wherever feasible, and is not filling up vacancies. Fresh recruitment has been frozen and the largest airline in passenger figures has also put increments on hold.

At the seventeenth annual general meeting of the carrier held in August, its chairman Naresh Goyal had said, ?We have put together dedicated teams to design and implement programmes to reduce, rationalise and monitor every element of cost and improve efficiencies and productivity.? He further added that he expected difficult times to continue in the aviation industry worldwide for some time.

The airline is also monitoring profitability of every route that it flies and has taken immediate remedial measures, where necessary. For example, the airline has suspended its flights to San Francisco (via Shanghai).

Industry insiders say Jet needs to earn a profit to fund purchases of new planes and expand services to North America and Europe.