Jet Airways posts $89m quarterly loss
Mumbai, May 25, 2013
India's Jet Airways and its smaller rival SpiceJet has reported quarterly losses as fare increases were not sufficient to cover high costs of operations.
Jet, controlled by Indian businessman Naresh Goyal, said its net loss widened to Rs4.96 billion ($89 million) for its fiscal fourth-quarter ended in March, from Rs2.98 billion reported a year earlier.
Total revenue for the country's No 2 carrier by domestic market share fell to Rs44.84 billion from Rs46.34 billion a year earlier. Jet said its fourth-quarter results included a one-time impact of Rs3.1 billion, mainly due to payroll arrears, maintenance and foreign exchange losses.
SpiceJet, ranked No 3 by local market share, said net loss for the three months to March narrowed to Rs1.86 billion from Rs2.49 billion a year earlier.
SpiceJet saw its revenue for the quarter rising 31 per cent from a year earlier to Rs14.56 billion as number of passengers grew by a fifth.
"We continue to be confident of the future," SpiceJet chief executive Neil Mills said, hoping the company's expansion on international routes will help improve its performance.
Jet, which has agreed to sell a 24 per cent stake to Gulf carrier Etihad in a $370 million deal, was optimistic of demand growth and said airlines were regaining their pricing power.-Reuters