Jet airways flies into red zone, Q1 net loss at Rs 355 cr | india | Hindustan Times
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Jet airways flies into red zone, Q1 net loss at Rs 355 cr

india Updated: Aug 09, 2013 00:29 IST
HT Correspondent

Lower seat factor, forex losses and high airport costs and fuel prices led Jet Airways to report a Rs 355.4-crore loss for the first quarter of 2013-14 against Rs 24.7 crore profit for the corresponding period last year. Net revenue declined 13% to Rs 4,005 crore.

The company said it suffered a Rs 131.5 crore foreign exchange transactional loss on account of significant devaluation of the rupee. The cancellation of long-haul flights cost Rs 123 crore. A Rs 23 crore increase in wage costs also impacted first quarter results.

While seat factor declined from 82.7% to 78.4% and number of passengers dropped from 4.86 million to 4.13 million, airport charges and fuel cost rose steeply.

"The domestic aviation industry is passing through a turbulent time due to a weak economic scenario resulting in sluggish demand growth. This coupled with airline's inability to pass on high input costs fully to the passengers have caused financial strain," said Hameed Ali, acting CEO, Jet Airways.

He said the proposed equity infusion by Etihad Airways will help deleverage the balance sheet, reduce costs and increase revenue through better connectivity and reach.

The Foreign Investment Promotion Board last month gave conditional approval to the Rs 2,058-crore Jet-Etihad deal.