Jet Airways Posts Rs 1,036 Crore Q4 Loss Due To Higher Fuel Costs
Jet Airways (India), the country's second-largest airline by market share, posted a loss in the fourth quarter (Q4) due to higher fuel expenses. Jet Airways posted a loss of Rs 1,036 crore ($151.50 million) in the three months ended March 31, compared with a profit of Rs 602 crore a year earlier, Jet Airways said on Wednesday. Revenue from operations rose about nine percent to Rs 5,925 crore, while aircraft fuel expenses surged 31 percent to Rs 2,063 crore.
Despite these challenges, in Q4 FY18 Jet Airways increased its capacity by over 10%, increased passenger load factor by 3.9% points, reported a positive year-over-year passenger and cargo RASK, reduced net debt (excluding debt taken for BKC property) by Rs 359 crores and achieved a year-over-year reduction in non-fuel CASK of 1.1%. Each of these metrics showcase Jet's commitment to its transformation plan despite financial pressure arising from the lag between the increase in crude oil prices and air fares. Over the last two years, air fares have remained flat while fuel prices have doubled, Jet Airways said in a press release.
During the quarter, as part of its strategy to deepen domestic connectivity, the airline re-designed its network and announced several new services from its twin hubs at Mumbai and Delhi to the North East, with Guwahati as its North East gateway. The airline's third hub - Bengaluru was also connected with emerging cities such as Patna, Pune and Amritsar, as part of its summer schedule. (With Thomson Reuters inputs)
