Jet pares loss to Rs 214 cr in Q3

Jet Airways (India) Ltd, has managed to bring down its loses by 44 per cent on a quarter to quarter basis.

Jet Airways (India) Ltd, has managed to bring down its loses by 44 per cent on a quarter to quarter basis. For the third quarter ended December 31, 2008 the airline has reported a net loss of Rs 214 crore down from Rs 384 crore loss in the 2nd quarter of the current year.

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The airline had reported loss of Rs 91 crore in the 3rd quarter of the previous year.

“This is a significant achievement considering the slowdown which affected demand for flying. In a difficult environment, we managed to improve yield. Drop in fuel prices helped so are our cost cutting measures.” Wolfgang Prock-Schauer, CEO, Jet Airways told HT.

“From a negative EBITA of 6 per cent in the previous quarter, we have taken it to a positive of 12 per cent in this quarter,” he said.

Though the recent terror incidents impacted traffic flow, Jet Airways managed to improve its margins by rationalising capacity. Reduction in jet fuel prices also helped to improve margins.

In the international sector it pulled out from Amritsar-Landon route. Soon it will discontinue from Mumbai-Shanghai-San Francisco and Bangalore-Brussels routes which are loss making.

The domestic operations accounted for 45 per cent operating revenue as compared to 63 per cent in the 3rd quarter last year, while revenue from international operations accounted for 55 per cent.

Jet Lite, Jet Airways’ 100 per cent low cost subsidiary also reported substantial reduction in losses. During the last quarter it reported a loss of Rs 22 crore as compared to Rs 86 crore loss reported in the same quarter of the previous year.

Jet Airways CEO said it would further improve profitability in the next quarter and will make a small profit in the coming year.