Jet Airways (India) Limited registered its highest ever quarterly loss of 8.91 billion rupees ($144.69 million) in the September quarter, putting a spotlight on the Indian aviation sector’s troubles, which include rising fuel costs exacerbated by a weak domestic currency, falling demand and growing competition, all of which have forced local airlines to resort to heavily discounted fares.
Jet Airways, India’s second-biggest carrier by domestic market share, has been posting losses for the past six years even as it prepares to sell a 24 percent stake to Abu Dhabi’s Etihad Airways for $334 million, subject to final approval from regulators. The deal is expected to provide Mumbai-based Jet with some liquidity and break out of a loss-making business cycle.
“Indian aviation Industry witnessed increasing cost challenges, mainly due to Rupee depreciation against US Dollar, high fuel prices and increase in airport charges in certain stations putting pressure on the bottom line,” Gary Toomey, Jet Airways CEO, said in a statement.
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