Jet Airways, the country's second largest carrier by market share, reported a net loss of about Rs 268 crores during the December quarter -- its fourth straight quarterly loss -- on the back of high fuel prices, rupee depreciation and increase in airport charges.
The Naresh Goyal-led company had posted a profit of Rs 85 crore during the same quarter last year.
During the December quarter, the airline reported a 7.8% year-on-year increase in its total income from operations to about Rs 4536 crore.
The airline however saw its expenses rise by 23% to Rs 4762 crore, during the same period, due to an increase in fuel expenses, aircraft lease rentals, and other expenses.
The Competition Commission of India (CCI), had in November 2013, cleared Abu-Dhabi-based Etihad to pick up a 24% stake in Jet Airways for Rs 2,057 Crore -- making it the first such investment from a foreign carrier in an Indian airline since the government allowed upto 49% Foreign Direct Investment (FDI) in Indian airlines.
“Post the equity infusion by Etihad, Jet reduces its debt from Rs 12,494.70 crore as of September 2013 to Rs 10,895.20 crore during December 2013. This will help lower Jet’s interest costs going forward, ” a Jet release said.
Giving the outlook for the next quarter, Jet Airways said that it plans to replace high cost debt with cheaper debt to reduce interest costs and lease or sell surplus aircraft in coming quarter.
The airline further added that it expects its fourth quarter to be muted on account of both yields and seat factors, while the depreciation of rupee against dollar continues to be a cause of concern.
Shares of Jet Airways fell 2.54% to close at Rs.228.50 per share on Friday on the BSE. The airline however announced its results after the closure of the market hours.