Jet Airways may incur losses for FY’08

Mumbai: Private carrier Jet Airways, which issued a statement on Thursday that it was postponing its financial results announcement to a date before June 30 instead of the earlier May 23, may report heavy losses for the fiscal 2007-08, predict market experts and industry analysts.
The company on Thursday said it was postponing the results announcement since the audit of its results will not be completed before a board meeting on Friday due to "unforeseen circumstances", but sources say the company could be pondering over losses incurred during the fiscal, owing to losses on international routes and derivatives, high fuel costs and rising staff salaries.
KG Vishwanath, senior general manager-MIS and investor relations at Jet told FE , "We had a routine meeting on Friday and the board will meet in the second or third week of June to take stock of the financial results."
The Jet Airways stock was down 3% to close at Rs 526.75 on the BSE on Friday.
Airline experts are of the view that Jet will report losses owing to multiple factors that have been dogging the airline. "The airline has started adding new international destinations since a year. It will have to incur start-up losses before it starts making profits after a couple of years on the international network." said an analyst who did not wish to be named, adding that murmurs that senior executives, including executive director Saroj K Datta, were exiting the company had also affected it.
24/05/08 Financial Express

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Categories: Jet Airways May 2008