Thaindian News

Mumbai, Nov 11 (IANS) Airline major Jet Airways Friday reported a net loss of Rs.713.60 crore in the second quarter of 2011-12 from a net profit of Rs 12.40 crore in the same period of the previous fiscal due to rising jet fuel costs and rupee depreciation.

“Abnormally high fuel costs, a low fares scenario induced by demand supply imbalance, together with a depreciating rupee versus the dollar and fare cuts have collectively impacted the second quarter performance of Jet Airways,” said Nikos Kardassis, chief executive, Jet Airways, said in a statement.

According to Kardassis, the company has taken measures to control costs.

“We have, however, managed to remain competitive through stringent cost control managed by looking at contract renegotiations, process improvements and increased ancillary revenues.”

Kardassis added that the airline would hold a sale and lease back of some of its aircraft to repay existing workings capital loans.

The company’s total income in the period under review increased by 7.6 percent to Rs.3,293.54 crore, from Rs.3,067.62 crore in the corresponding quarter of last fiscal.

For the first half of the fiscal, the company reported a net loss of Rs.836.76 crore against a net profit of Rs.15.92 crore in the like period of 2010-11.