Jet Q2 loss at Rs 355 cr on weak rupee, high airport and fuel charges

New Delhi: Jet Airways, in which Abu Dhabi’s Etihad is buying a minority stake, reported its second consecutive quarterly loss on lower income from operations.

Jet posted a net loss of Rs 355 crore for its fiscal first quarter to end-June, compared with a net profit of Rs 24.7 crore reported a year earlier.

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Jet Airways chairman Naresh Goyal said, “the year gone by has been tough for Indian aviation, have re-deployed flights on profitable routes.”

Goyal said Jet Airways is looking to rationalise routes and that 58 percent of revenues were generated through international routes.

The company attributed the loss to depreciation of the rupee against the dollar, sharp increases in airport charges at key metros and high fuel prices.

However, higher yields and continued coast control measures helped the company to post an operating profit of Rs 529 crores.

The company incurred Rs 132 crore forex loss.

“The industry capacity growth is expected to be very modest and this will result in overall yields and seat factors remaining stable for the balance part of the year,” said the company.

Jet recently won a key regulatory approval for its deal to sell a 24 percent stake to Etihad for $379 million, which will be the biggest foreign investment in the Indian civil aviation sector after ownership rules were relaxed.

The companies, which need some more approvals, are yet to close the deal.

With inputs from Reuters