June quarter: Jet Airways in Rs 1,323 crore loss

By: | Updated: August 28, 2018 6:00 AM

Jet Airways on Monday posted a huge Rs 1,323-crore loss for the June quarter against a profit of Rs 53.50 crore in Q1FY18. The private sector airline’s revenues grew just 6.4% year-on-year to Rs 6,010.46 crore with yields under pressure in the highly competitive market.

The airline has been facing serious cash flow issues and is understood to have weighed salary cuts.

Jet Airways on Monday posted a huge Rs 1,323-crore loss for the June quarter against a profit of Rs 53.50 crore in Q1FY18. The private sector airline’s revenues grew just 6.4% year-on-year to Rs 6,010.46 crore with yields under pressure in the highly competitive market.

The airline has been facing serious cash flow issues and is understood to have weighed salary cuts. The company said on Monday it would focus on raising fresh funds, partly by monetising its 8.5-million-member Jet Privilege loyalty programme and attempt cost-cutting measures to save Rs 2,000 crore over the next two years.

The company had deferred the announcement of the Q1FY19 results. Following the delay both the ministry of corporate affairs and the Securities and Exchange Board of India are understood to be making enquiries into the company.

The highly leveraged company paid out close to Rs 250 crore as interest during the June quarter. Fuel expenses shot up by as much as 53% year-on-year to Rs 2,332.5 crore, leaving the carrier with an Ebitda (earnings before interest, taxes, depreciation and amortisation) loss of Rs 1,018.4 crore. The Ebitdar came in at Rs 52 crore, way below the Rs 870 crore reported in Q1 FY18.

The Jet stock has lost 66% since January and closed Monday’s session at Rs 281.80, ahead of the earnings announcement. Gulf carrier Etihad Airways owns a stake of 24% in the full-service carrier which is promoted by Naresh Goyal.

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