Jet Airways reports net loss of Rs.1326 Crore on higher fuel prices, rising operating cost

Mumbai:  Crisis-ridden Jet Airways today reported a net loss of INR 1,326 crores, compared to a net profit of INR 58 crore in Q1FY18. For the period April to June 2018, the airline reported an EBITDAR of INR 52 crores versus an EBITDAR of INR 870 crores in Q1 FY18. Macroeconomic factors led by an increase in Brent fuel price by more than 36%, a depreciating rupee and the resulting mismatch between high fuel prices and low fares primarily undermined Jet Airways’ performance in the quarter.

During the quarter, the airline inducted its first B737 MAX aircraft into its fleet with another 10 expected during the Year. The B737 MAX will enhance the airline’s operational reliability and also reduce its sub-fleet complexity while reducing costs. The MAX will also refresh Jet Airways’ guest experience by a significant measure.

Significantly, the Board also considered various cost-cutting measures, debt reduction and funding options, including an infusion of capital, monetization of assets including the Company’s stake in its Loyalty programme. The management has been tasked to take this forward and accomplish it in a time-bound manner. With the Comprehensive cost reduction programme the company expects an excess of INR 2,000 crores of cost reduction over the next two years. The cost reduction programme covers various facets of the company’s operations including Maintenance costs, Selling and Distribution costs, Fuel rate and optimization, Debt and Interest cost reduction and enhancement of Crew and manpower productivity.