Jet Airways posts lower losses, helped by other income

Jet Airways, India’s largest airline by market capitalisation, reported a loss of Rs 101 crore for the December quarter compared toa Rs 118 crore profitin the same quarter a year ago.

While still a loss, the December quarter loss is significantly lower than the loss of Rs 713crore it reported in the September quarter.

Compared to the December quarter revenue of Rs 3,261 crore last year, Jet’s revenues this year rose by 13.3 percent to Rs 3,696 crore. A saving grace for the company was the sharp increase in its other income - which rose to Rs 226 crore this quarter against Rs 40.55 crore year-on-year. This included profit from aircraft engine sales of Rs 76 crore and Rs 102.86crore from the sale of land.

Increasing losses for the airline have been a cause of concern. Firstpost had reported earlier that the substantial losses made by the airline in the past three quarters have been eating into its book value, which is expected to be largely eroded by the end of March 2012, according to a HSBC report.