India's Jet Airways posts biggest quarterly loss in three years
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The largest private Indian airline Jet Airways has posted its biggest quarterly loss in three years. The Indian air industry was recently hit by rapidly increasing fuel costs. The airline lost Rs 384 crore (€61,000,000) this quarter, compared to a Rs 28 crore profit (€4,500,000) in the same period last year. There was an increase in expenditure of 143% on fuel costs to wipe out a 45% income increase. The total cost of fuel has risen from Rs 696 crore (€110,700,000) last year to Rs 1690 crore (€268,800,000), and income rose from Rs 2,254 crore
The largest private Indian airline Jet Airways has posted its biggest quarterly loss in three years. The Indian air industry was recently hit by rapidly increasing fuel costs.
The airline lost Rs 384 crore (€61,000,000) this quarter, compared to a Rs 28 crore profit (€4,500,000) in the same period last year. There was an increase in expenditure of 143% on fuel costs to wipe out a 45% income increase. The total cost of fuel has risen from Rs 696 crore (€110,700,000) last year to Rs 1690 crore (€268,800,000), and income rose from Rs 2,254 crore (€358,400,000) to Rs 3,258 crore (€518,150,000) in the same period.
Faced with an economic slowdown and surging fuel prices, last month Jet entered an alliance with Kingfisher Airlines. The pair hope to offset their crippling costs by collaboration.
Sources & reporting note
Licensed archive reporting by Wikinews contributors. Text: CC BY 2.5 (https://creativecommons.org/licenses/by/2.5/). Original source date retained. 411 has not independently verified this archive report.
Read the source: Wikinews ↗Source published 26 Oct 2008, 05:30 am IST
