Jet Airways' plan to recover Rs 1323 crore loss
New Delhi : Jet Airways posted a quarter loss of over Rs 1323 crores, excluding those of its unit, on higher fuel costs and foreign exchange losses. To overcome the losses, the company has outlined a turnaround plan with an aim to recover losses in second quarter.
"The company has undertaken various initiatives in relation to saving cost, optimize revenue management opportunities and enhance ancillary revenues. These initiatives are expected to result in improved operating performance," Jet Airways said in a statement.
The board members also approved a turnaround plan that would bring down cost by upto Rs 2000 crores in a time duration of two years.
“The two significant proposals considered by the board of directors, that is, infusion of capital and the monetization of the airline’s stake in its loyalty programme, bode well for the long-term financial health and sustainability of the airline,” said Naresh Goyal, chairman of Jet Airways.
Jet Airways chief executive Vinay Dube said in a statement that the rise in the price of Brent crude, a depreciating rupee and a resulting mismatch between high fuel prices and low fares have adversely impacted the Indian aviation industry, including Jet Airways.
Jet Airways reported a stand-alone revenue of ₹6,066.91 crore during the June quarter, up from ₹5,953.92 crore during the June quarter a year earlier.
The airline’s costs (total expenses) during the June quarter rose to ₹7,389.91 crore from ₹5,900.42 crore in the year-ago quarter.
The airline also reported a foreign exchange loss of ₹364.62 crore during the quarter.