Debt laden full service carrier, Jet Airways, on Monday reported a net loss of Rs 1,323 crore for the quarter ended June, hurt by rising fuel prices and a depreciation of the rupee.
The airline had reported a net profit of Rs 53.5 crore in the same period a year ago.
Revenue from operations rose 6.4 percent to Rs 6,010.5 crore for the quarter compared to the same period last year.
The company has incurred a loss during the current quarter and has negative net worth as at June 30 2018, said chairman Naresh Goyal.
But Jet has undertaken various initiatives in relation to saving cost, optimize revenue management opportunities and enhance ancillary revenues, he said adding that these initiatives are expected to result in improved operating performance.
“Further, the company's continued thrust to improve operational efficiency and initiatives to raise funds, including monetisation of assets, are expected to address uncertainties in relation to generation of sustainable cash flows and ability to repay its borrowings," Goyal said.
Partially-owned by Gulf carrier Etihad, Jet Airways has been facing turbulence since the beginning of this year, having reported a massive loss of over Rs 1,000 crore in March quarter.
The board of the crisis-hit airliner met on Monday to consider cost reduction initiatives and a turnaround plan along with June quarter results, after the company deferred announcement of unaudited financial results on August 9.
Aviation regulator, directorate general of civil aviation (DGCA) conducted a financial audit of Jet Airways, as its financial conditions remained under pressure due to the high aviation turbine fuel (ATF) prices and cut-throat competition in the sector.
Turbulent Times Calls For Desperate Measures
Jet Airways constituted a new committee to improve public perception at its annual general meeting (AGM), as it had been in the news for imposing a salary cut of 25 percent, which it later withdrew after protests.
Goyal said that all perceptions about the company will be corrected through a new executive committee, where Nasim Zaidi, former civil aviation secretary, and Ashok Chawla, former chairman of the Competition Commission of India (CCI) will chair these meetings.
According to sources, Jet Airways had also initiated a formal stake-sale process to raise between $350-400 million from private equity firms and was in talks with Blackstone, TPG and Indigo Capital Partners.However, it later denied the news by saying "the company's relationship with its strategic partner is "very strong and continues to grow further."
The airliner which is facing financial woes came under the scanner of the Ministry of Corporate Affairs (MCA), after reports claimed that the airline allegedly siphoned funds and is currently facing a probe by the ministry.
The airliner, which has 15 turboprop aircraft manufactured by ATR in its fleet, is in talks with TruJet to sublease up to seven of its planes to reduce costs and mop up additional revenue.
First Published: IST