8216;Jet Airways loss seen widening8217;

HSBC expects net loss of Jet Airways India in July-Sept to widen to 3.5 billion rupees and also raised loss estimate for FY12. Jet will report second quarter earnings results on November 11. Of the recurring loss of 3.5 billion,2.5 billion rupees will be Jet Airways standalone,and 1 billion rupees low-cost arm Jetlite,the bank said in a research report.

The bank has cited 16 y-o-y rise in unit costs led mainly by the 45 y-o-y rise in unit fuel costs only partially offset by a 10 rise in overall yields and flat load factor performance for the July-Sept net loss. Higher jet fuel price,the rupee8217;s weakness that raises interest cost of dollar debt,relatively higher cost base of JetLite and lower load facotrs are the main reasons for loss forecast for the coming quarters,it said.

HSBC has cut target price of Jet Airways to 275 rupees from 500 rupees maintaining a 8216;neutral8217; rating. At 12.54 pm,shares of Jet Airways were at 261.80 rupees,up 3.66 per cent