Jet Airways Q1 net loss at Rs355 crore

Fall in value of rupee and a steep increase in fuel prices led to Jet Airways posting a loss of Rs 355 crore in the first quarter of the current fiscal.

The airline had registered a profit of Rs 24.7 crore during same period last year.

Total income from operations declined to Rs 4,005.15 crore in the June quarter from Rs 4,587.27 crore in the year-ago period.

The devaluation of rupee versus US dollar,steep increase in landing and navigation charges at key metros and high fuel prices has impacted the industrys profitability, Hameed Ali,acting CEO,Jet Airways,said in a statement.

The statement added that the domestic aviation industry continues to go through a turbulent time as it has been for quite some time now due to weak economic scenario resulting in a sluggish demand growth. This coupled with airlines inability to pass on high input costs fully to the passengers,have caused financial strain on airlines, it further said. The carrier,however,hopes the demand scenario to improve further in the second half of the current fiscal.

The proposed equity infusion by Etihad Airways will significantly change the landscape of business not only in terms of deleveraging the balance sheet but also reduction in costs, said a statement quoting Ali.