NEW DELHI: Shares of Jet AirwaysBSE -2.63 % Ltd nosedived as much as 6.06 per cent in early trade on Thursday, after the country's second-biggest airline by market share said its net loss for the July-September quarter widened more than eight times year-on-year to Rs 891.01 crore.
This was its third straight loss-making quarter. Before this, Jet’s biggest net loss was Rs 713 crore during July-September in 2011.
At 10:20 a.m.; Jet Airways recouped some of the morning losses and was trading 3.3 per cent lower at Rs 334.20. It has hit a low of Rs 325.05 and a high of Rs 337.80 in trade today.
Sales during the just-ended quarter rose less than a percent to Rs 3,788.2 crore. Jet said its yield per passenger rose 11% to Rs 8,335. Its number of passengers rose by 12% while total departures rose by 6%, it added.
Jet’s cash reserves and deposits at the end of last fiscal year were at Rs 837 crore, which was razed by Rs 688.3 crore of cash losses in the first six months of the current fiscal.
Like its peers in the Indian aviation industry, Jet has been hit by high fuel costs, a slowdown in the domestic travel industry, undercutting in prices and a depreciation of the rupee.
“The airline has already defaulted on lease rentals to International Lease Finance Corporation. The airline said its net worth has eroded to a negative Rs 1,734.5 crore, as on September 30, 2013,” ET reported.
Jet said that its earnings were hit by instances of aircraft on ground, the impact of which was approximately Rs 123.3 crore, added the ET report.
Jet’s losses on its domestic operations rose more than four times to Rs 632.1 crore. It swung to a loss of Rs 258.9 crore on its international operations compared to a profit of Rs 45.2 crore a year earlier.
The airline is expected to shortly get $379 million from a stake sale deal with Etihad Airways, but analysts said the funds won’t be enough for the airline to expand or turn around its operations.
This was its third straight loss-making quarter. Before this, Jet’s biggest net loss was Rs 713 crore during July-September in 2011.
At 10:20 a.m.; Jet Airways recouped some of the morning losses and was trading 3.3 per cent lower at Rs 334.20. It has hit a low of Rs 325.05 and a high of Rs 337.80 in trade today.
Sales during the just-ended quarter rose less than a percent to Rs 3,788.2 crore. Jet said its yield per passenger rose 11% to Rs 8,335. Its number of passengers rose by 12% while total departures rose by 6%, it added.
Jet’s cash reserves and deposits at the end of last fiscal year were at Rs 837 crore, which was razed by Rs 688.3 crore of cash losses in the first six months of the current fiscal.
Like its peers in the Indian aviation industry, Jet has been hit by high fuel costs, a slowdown in the domestic travel industry, undercutting in prices and a depreciation of the rupee.
“The airline has already defaulted on lease rentals to International Lease Finance Corporation. The airline said its net worth has eroded to a negative Rs 1,734.5 crore, as on September 30, 2013,” ET reported.
Jet said that its earnings were hit by instances of aircraft on ground, the impact of which was approximately Rs 123.3 crore, added the ET report.
Jet’s losses on its domestic operations rose more than four times to Rs 632.1 crore. It swung to a loss of Rs 258.9 crore on its international operations compared to a profit of Rs 45.2 crore a year earlier.
The airline is expected to shortly get $379 million from a stake sale deal with Etihad Airways, but analysts said the funds won’t be enough for the airline to expand or turn around its operations.
By
Shah Mohammad Abdul Qadir
PGDM 1st sem
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