Cash-strapped Jet Airways reported major losses of Rs 1,323 crore in the April-June 2018 quarter owing to the mounting fuel prices. The airline company had announced a net loss of Rs 1323 crore for the quarter, despite making profits of Rs 58 crore during Q1FY18.
In a report by the Times of India, Jet Airways had blamed the losses on the increase in the price of the aviation fuel and the low airfare. "Macroeconomic factors led by an increase in Brent fuel price by more than 36%, a depreciating rupee and the resulting mismatch between high fuel prices and low fares primarily undermined Jet Airways' performance in the quarter.", the statement read.
The Naresh Goyal-led company proposed various cost cutting measures. The statement further read, "The company has undertaken various initiatives in relation to saving cost, optimize revenue management opportunities and enhance ancillary revenues. These initiatives are expected to result in improved operating performance."
Naresh Goyal told Live Mint, "The two significant proposals considered by the board of directors today, that is, infusion of capital and the monetization of the airline's stake in its loyalty programme, bode well for the long-term financial health and sustainability of the airline".
The statement further read, "The company's continued thrust to improve operational efficiency and initiatives to raise funds, including monetization of assets, are expected to address uncertainties in relation to generation of sustainable cash flows and ability to repay its borrowings... Accordingly, the financial results continue to be prepared on a going concern basis, which contemplates realization of assets and settlement of liabilities in the normal course of business, including financial support to its subsidiaries."
