LONDON – Jet Airways has today reported a Q1 loss of Rs13.2 billion for the quarter ending 30 June, after reporting a profit of Rs53.5 million from the previous period.
Revenues for the carrier rose by 2% to Rs60.7 billion with expenses rising a staggering 25% to Rs73.9 billion.
Chief Executive of Jet Airways Vinay Dube commented on the results: “The rise in the price of Brent fuel, a depreciating rupee and a resulting mismatch between high fuel prices and low fares have adversely impacted the Indian aviation industry, including Jet Airways”.
As a result of this heavy losses, the Board of Directors has told management to begin the process of achieving savings of Rs20 billion to reduce debt.
The cost reduction will see the airline produce savings in their maintenance, distribution, fuel and labour productivity departments.
The airline will also wet-lease out excess ATR-72 capacity to other operators in an effort to gain some extra revenues.
They will also be quickly seeking additional cash equity infusions and the monetization of their assets through the minority stake in their loyalty programme.
For Jet Airways, this is not good news. The carrier will be hoping to claw back into profitability, especially with 737MAX8 aircraft on their way.
Boeing is on the cards to hand over prepayment money back to the carrier to liquidate them further otherwise they will go into administration.
This is not a surprising time for Indian aviation. With the likes of Air India struggling also, it is no surprise that Jet Airways is also in a bad way.