JET AIRWAYS REGISTERS LOSS IN FOURTH QUARTER FY 2017-18
Jet Airways slipped to 10.40 billion net loss in the fourth quarter of FY 2018 on rising costs and sharp fall in other incomes. In the same period last year, the airline had made a net profit of 5.83 billion. The airline had posted positive results for three preceding quarters, though its profit declined in the first nine months of the fiscal. Other incomes that include profit from sale and lease of aircraft and gains from real estate development, on stand-alone basis, fell 84 per cent to 1.3 billion while overall expenses rose 25 per cent to 70.91 billion in the fourth quarter of financial year 201718. Total revenue was up eight per cent to 61.96 billion.
This was Jet’s first loss after eleven consecutive profitable quarters. The airline’s auditors have made an observation regarding airline’s ability to continue as a going concern following full-year loss and its negative net worth. The management, however, is confident that its cost-saving and revenue management initiatives will help it to raise substantial cash flows and address uncertainties.The airline management blamed the weak financial results in the fourth quarter to rising fuel price, weakening rupee and one-time maintenance charges resulting in extra expenses of 7.75 billion on a year-onyear basis. Expenses in all heads showed an increase except salary bill and lease rentals.