Country’s second-biggest carrier by domestic market share, Naresh Goyal-run Jet Airways on Wednesday reported highest ever quartely losses due to depreciating currency, high fuel prices and increases in airport charges in select Indian airports.
Jet Airways, in which Abu Dhabi’s Etihad bought 24 per cent stake in April, announced a eight-fold jump in losses at Rs 891 crore in the September quarter on Wednesday. The airline company had reported loss of Rs 99.7 crore in the same quarter a year ago.
Net income, however, rose marginally to Rs 4,194.7 crore in the quarter ended September 30, 2013 from Rs 4,137.63 crore a year ago, Jet Airways said in an exchange filing this evening. On a consolidated basis (Jet Airways and Jetlite), net loss stood even higher at Rs 998.5 crore in the reporting quarter.
lean season and economic slowdown resulted in drop in yields. Moreover, depreciating currency, high fuel prices and increases in airport charges at select domestic airports have driven cost pressures resulting into losses, the airline said.
Talking about the outlook of the company, the release added that Q3 would reflect high seasonality, which would help to improve yields. Domestic fare revision which was made at the fag end of Q2 would start showing positive effect in the balance part of the year. The forward booking trends for the quarter are quite encouraging. In this ensuing peak season more of business class seats will be on offer.
“Indian aviation Industry witnessed increasing cost challenges, mainly due to Rupee depreciation against US Dollar, high fuel prices and increase in airport charges in certain stations putting pressure on the bottom line,” said Jet Airways chief executive Garry Toomey.
“In the current scenario, Jet Airways has managed to remain competitive through series of planned steps, such as discontinuing loss making routes and stringent cost control measures. The ongoing initiatives will augment well for the airline’s performance in the quarters to come,” Toomey added.
“We believe and strive for customer satisfaction by investing into effective marketing strategies and proactive initiatives resulting in enhancing our guest experience. Jet airways roots for customer delight while building industry benchmark for service excellence and supreme quality,” Toomey further added.