Jet Airways Q2 net loss at Rs406 crore
27 Oct 2009
Mumbai: Private carrier, Jet Airways, one of India's largest, said its net loss widened 5.76 per cent over the year-ago period to Rs406.69 crore for the quarter ended 30 September 2009.
The loss for the previous period was Rs384.53 crore.
The carrier said total income decreased 27 per cent from Rs 3,258.45 crore in the second quarter of 2008 to Rs 2,380.97 crore in the second quarter of 2009.
A company statement said the losses occurred mainly on account of lower yields arising from intense competition and over capacity in the market as also high interest cost.
"The company suffered losses mainly from lower yields, due to intense competition and overcapacity," Jet executive director Saroj Dutta said in a statement to the Mumbai stock exchange.
Disruption of operations from a pilots strike also contributed to the losses.
A five-day walk-out, with the pilots going on mass sick leave, resulted after the management sacked two senior pilots for setting up an unrecognised trade union. The strike turned out to be one of the biggest travel disruptions in India in recent years, affecting thousands of passengers and hundreds of domestic and international services.
Jet shares fell 36.4 rupees or 9.05 per cent to 365.8 on the Mumbai stock exchange on Tuesday.