Private carrier Jet Airways reported a net loss of Rs 355.38 crore for the first quarter ended June 30, 2013, compared to a profit of Rs 24.7 crore in the same period a year-ago.This is Jet’s second consecutive quarterly loss.
Due to pay hikes in March, expense went up by Rs 23 crore which did not reflect in the year-ago period numbers.Cancellation of certain long haul flights in Q2 and Q3 of FY13 meant that there were instances of aircraft on ground during the quarter. The impact of this was Rs 1,22.8 crore.Due to steep depreciation of the rupee, airport charges at key airports also increased.The Etihad-Jet deal has got a conditional approval from the Foreign Investment Promotion Board (FIPB) and it needs approval of the Union Cabinet.
The company expects industry capacity growth to be very modest and this will result in overall yields and seat factors remaining stable for the rest of the year. However, international business continues to be strong with high seat factors. It will also reflect high seasonality.A consistently falling rupee resulting in higher fuel price along with increase in airport charges are an area of concern. Also, a weak economic environment could affect operating results in short term.But according to Jet oficials it is constantly working towards bringing down operating cost by improving aircraft utilization, replacing high cost debt and achieving synergies in terms of network.
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