Jet Q2 net loss at Rs 714 cr on high fuel cost, weak rupee

Moneycontrol Bureau

Jet Airways reported a net loss of Rs 714 crore for the September quarter, on a combination of high fuel cost, low passenger traffic because of slack season, and a huge forex loss triggered by the steep depreciation of the rupee.

The carrier has made a profit of Rs 12 crore in the corresponding quarter last year.

The company incurred a forex loss of Rs 276 crore as the rupee weakend over 10% against the dollar Y-o-Y. The company had made a forex gain of Rs 374 crore during the same period last year The company incurs 60% of its expenditure in dollar denomination to pay its outstation staff, buy fuel for its international operations and to pay rentals on aircraft it has bought on lease.

Similarly fuel cost also rose 50% to Rs 1,491 crore Y-o-Y.

Meanwhile, revenues grew 8% to Rs 3294 crore, boosted by an income of  Rs  106 crore from aircraft which the company has leased to international carriers.

Explaining the reasons for the loss during the quarter, Nikos Kardassis, chief executive officer at Jet in an earnings statement said,