Jet Airways reports its biggest quarterly loss in three years
Published: 27 Oct 2008
Jet Airways (India) Ltd. has posted its biggest quarterly loss in more than three years. The airline, which posted revenues worth US$ 693.8 million, posted loss after tax of US$ 81.9 million in the second quarter ending on September 30.
"The company suffered losses mainly on account of high fuel and lower load factors, resulting in lower-than-expected revenues," Jet executive director Saroj Dutta said in a statement.
"The impact of the global meltdown and the resultant slowdown in traffic has been felt by airlines across the world and India has been no exception to this. This phase is following the one wherein airlines had to contend with record high crude oil prices. The quarter ended September is historically the weakest quarter of the year in terms of demand," stated the airline.
Earlier this month Jet struck an alliance with rival Kingfisher Airlines to help both carriers battle slowing passenger growth and high fuel costs which have pushed up fares. The alliance involves joint fuel management, ground handling, network rationalisation and crew sharing. However, both the airlines will maintain independent legal and brand entities. The two companies have said the alliance will mean huge cost savings.
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