Jet Airways on Monday announced a loss of Rs 1,323 crore for the first quarter of FY19 against a profit of Rs 53.50 crore in the corresponding quarter a year ago.
Jet Airways on Monday announced a loss of Rs 1,323 crore for the first quarter of FY19 against a profit of Rs 53.50 crore in the corresponding quarter a year ago. The increase in brent fuel prices, falling rupee and a mismatch between rising ATF rates and low fares resulted in steep loss for the airline, Vinay Dube, CEO, Jet Airways said. This is airline’s third highest quarterly loss. The company board on August 9 had deferred announcement of unaudited financial results for the quarter ended June.
While the consolidated revenue of the airline increased by 2 percent to Rs 6,312 crore, expenses surged 24.7 percent to Rs 7,638 crore.
The unit costs for transporting a seat per kilometre surged nearly 9 percent against a decline in unit revenue for transporting a seat per kilometre, the company said. In the same quarter, IndiGo’s profit declined 97 percent and SpiceJet reported a loss of Rs 38 crore.
“The two significant proposals considered by the board of directors today i.e. infusion of capital and the monetisation of the airline’s stake in its Loyalty programme bode well for the long term financial health and sustainability of the airline,” said Jet Airways Chairman Naresh Goyal.
The ‘comprehensive’ programme to reduce cost will help the debt-laden airline to reduce operational costs over Rs 2,000 crore in the coming two years and balance sheet restructuring through capital infusion and debt reduction.
The other measures that the airline proposed include offering choice and flexibility to the guests on the same lines as followed worldwid
Meanwhile, shares of Jet Airways (India) Ltd. were trading at Rs 282.60 up 0.28 percent in the early trade today on BSE at the time of reporting.