Jet Airways reports Rs 1,323 crore loss in first quarter, as against Rs 53.50 crore profit last year

Jet Airways has reported a loss for the second consecutive quarter. For the three-month period ending June, the airlines suffered a net loss of Rs 1,323 crore.

In the corresponding period last year, the Naresh Goyal-led carrier had profited by Rs 53.50 crore.

Jet Airways has attributed the loss primarily to the surge in Brent crude oil prices, which has led to a hike in the charge of procuring aviation fuel.

The weakening rupee against the dollar, along with the competitive pricing of airfares, are cited among other reasons.

This is the second straight quarterly loss for the airline, which had abruptly postponed result announcement on August 9, leading to a slew of regulatory queries. In the March quarter, too, the airline had reported net losses of Rs 1,036 crore.

On the cost-cutting and stake sale plan, chairman Naresh Goyal said that the board today approved two significant proposals: capital infusion and monetisation of the airline's stake in its loyalty programme Jet Privilege.

"These two measures bode well for the long-term financial health and sustainability of the airline," Goyal said in a statement.

Total income marginally improved to Rs 6,066 crore from Rs 5,953 crore a year ago, the airline said in an exchange filing.

Fuel cost soared 53 per cent to Rs 2,332 crore from Rs 1,524 crore in the year-ago period.

On a consolidated basis, the airline said its loss stood at Rs 1,326 crore, against a net profit of Rs 58 crore a year ago.

The airline expects to reduce costs by Rs 2,000 crore over the next two years by way of various cost-reduction measures.

"Comprehensive cost reduction programme will result in excess of Rs 2,000 crore over the next two years," it said.

It explained that cost reduction covers various facets of operations, including maintenance costs, selling and distribution costs, fuel rate and optimization, debt and interest cost reduction and enhancement of crew and manpower productivity.

(With inputs from PTI)