Jet Airways reports Rs129 crore Q1 loss
23 Jul 2011
New Delhi: India's largest private carrier by passengers carried, the Jet Airways and JetLite combination, has reported a loss of Rs128.5 crore in the first quarter of the current financial year, citing high fuel prices and below-cost fares offered by other carriers as the reasons. It had reported a profit of Rs8.4 crore for the same period last year.
The loss comes even as Jet-JetLite group saw revenue rise by 14.7% to Rs4,014.5 crore in the quarter because of a 13% growth in passenger carriage and improved aircraft occupancy rates. However, these failed to boost bottomlines.
A Jet statement said, "In May and June, 2011, pricing in the market was impacted by two big carriers dropping fares below cost. Q1 of FY-12 also saw steep increase in fuel prices which consumed all of the increase in revenue during the quarter."
With fuel rates going up by 39% in first quarter of this fiscal over the same period last year, aviation fuel accounted for 42% of the airline's total cost, up from 34% in same period last year.
"The company continues to explore options to raise finances to meets its various short-and-long-term obligations. These measures would result in sustainable cash flows," the statement added.
The airline's scrip closed at Rs499, up 2.4% from its previous close on BSE.