India’s Jet Airways reports quarterly loss of $177m

Jet Airways, India’s private airline which ran into financial troubles in the recent months, has reported on Monday a loss of Rs 1,297.46 crore ($177.7 million) during the July-September quarter, against a profit of Rs 49.63 crore in the corresponding period of last year.

The airline, however, reported an improved revenue at Rs 6,161.15 crore ($844.14 million), up by 9.5 percent.

A statement by Jet Airways said its total expenditure increased to Rs 7,534 crore over Rs 5,708.55 crore.

Aircraft fuel expenses jumped to Rs 2,419.76 crore, an increase of 58.6 percent over the same period of last year. Aircraft and engine lease rentals increased to Rs 684.33 crore from Rs 575.15 crore during the quarter under review, the statement said.

The increase in the aircraft fuel expenses in the recent months following the spike in aviation fuel prices globally was the major cause for the financial troubles of Jet Airways. The jump in its leasing rentals due to the sliding rupee exchange value also added to the airline’s woes.

Jet was reportedly scouting for a strategic investor to infuse additional funds into the airline to tide over its rising financial troubles. A section of Indian media had named the Tata Group as the corporate group with which Jet Airways had held parleys for a possible stake sale.

Jet Airways executives, however, had denied these reports as ‘speculative’.

IndiGo, the leading Indian career in terms of market share, has also reported loss to the tune of Rs 652.13 crore ($89.33 million) in the July-Sept quarter, its first loss since the airline’s shares were listed on the Indian bourses in November 2015.

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