Private Jet flies into red zone, crashes to Rs 1,261 cr Q2 loss
Mumbai: Jet Airways Monday reported a whopping Rs 1,261 crore in consolidated net losses for the three months to September against a profit of Rs 71 crore in the same period year ago, impacted by higher fuel cost and the ongoing plunge in the rupee.
Already its larger rival Indigo had reported a net loss of Rs 652.13 crore in the September quarter compared to a profit of Rs 551.56 crore a year ago, making it the first loss since becoming a publicly traded company.
On a standalone basis, the Naresh Goyal promoted airline, which has been facing cash crunch from some time leading to delayed salaries and other payments, reported a net loss of Rs 1,297.46 crore against a profit of Rs 49.63 crore a year ago.
Total sales rose to Rs 6,363 crore during the reporting quarter, which is a growth of 6.9 percent from Rs 5,952 crore over the same quarter last fiscal.
On the back of a spike in crude prices, the airline reported a 58.6 per cent jump in its fuel expenses at Rs 2,419.76 crore during the quarter. In the year-ag0 period, the airline had spent Rs 1,525.66 crore in fuel cost, the carrier said in the statement.
"With our clearly defined focus on profitability, we are in the midst of turning the ship around. We remain closely engaged with all our partners, who acknowledge the challenges faced by the domestic aviation industry and have been very supportive," chief executive Vinay Dube was quoted as saying in the statement.
"While we navigate the challenges posed by the current industry environment, our focus and attention remains on safety and operational reliability. We are confident we'll overcome these challenges, honour our commitments to our stakeholders, and deliver a more strategic, efficient and financially viable airline," he added.
At the strategic level, he said, the airline remains committed and is on track to realise most of the outcomes that were outlined as part of the turnaround strategy announced last quarter, including cost savings in excess of Rs 2,000 crore over the next two years via strategic initiatives.
The other cost-saving initiatives include sub-fleet simplification, reduction in sales and distribution cost along with maintenance cost, renegotiation of contracts with vendors, and a more productive resource deployment geared to enhance profit and revenue.