Hard times

Mumbai, Oct. 25 (PTI): Naresh Goyal-led Jet Airways today suffered a net loss of Rs 384.5 crore for the second quarter ended September 30 against a net profit of Rs 28.3 crore in the year-ago period.

The airline said its revenue in the latest quarter was below expectations, primarily because of higher fuel and operational costs as well as lower flight occupancy.

The company’s total income in the reporting quarter has, however, increased to Rs 3,121.34 crore from Rs 1,818.55 crore in the year-ago period, the company said in a statement.

Jet is taking steps towards cutting costs and route rationalisation that should improve its operational efficiency and profitability, the company said.

According to Jet, the airline’s subsidiary JetLite (formerly Sahara Airlines) has accumulated losses more than its net worth, but it plans to support the growth plans of the budget carrier that will eventually boost its revenue, net worth, and profitability.

Jet Airways has deferred the delivery of aircraft by at least a year, but has not cancelled any order as yet.

“We have deferred our expansion plan and are postponing our aircraft deliveries by at least a year. We will be phasing out four B-737 aircraft and not replacing them,” the company said in its outlook for the coming financial quarters.

The airline, however, said that on expiry of all future leases, it would take a call on replacements around the lease expiry date.

The quarter ended September 30 was historically the weakest quarter of the year in terms of demand, Jet said, adding that it expected “the impact of the recent reduction in crude oil prices to be passed on to the industry in the next quarter.”

The depreciation of the rupee against the US dollar from around Rs 43 in the first quarter to around Rs 47 in the end of the second quarter has also affected the company’s performance as nearly one-third of its operating expenses are in dollars, but only 15 per cent of the revenue is in the same currency, the airline said.