Kingfisher Airlines seeks govt help, Jet Airways swings to loss

Mumbai/New Delhi: Jet Airways, India's top airline by market share, on Friday said it swung to a net loss, compared with a profit a year ago, hurt by rising fuel prices and a forex loss in the quarter.
For the quarter ended September, Jet Airways reported a net loss of 7.13 billion rupees for July-Sept, compared with 124 million rupees a year ago.
Total income rose to 32.93 billion rupees from 30.67 bilion. "Tough pricing environment, lean season impact and high fuel prices impacted the results," the carrier said in a statement.
Earnings were also hit by an exceptional forex loss of $52.7 million due to depreciation of the rupee amounting. Fuel prices went up by 41 percent on year, hitting profitability.
Despite placing huge orders worth $50 billion with Boeing and Airbus, India's airlines are struggling to make money. Jet's rival Kingfisher Airlines has been forced to cancel scores of flights this week to cut losses as it does not have money to fly full capacity. State-run Air India is operating on government life support.
In the scenario, Jet Airways has managed to ensure it remains competitive through stringent cost control, strategic code shares that offer greater connectivity via a wider network, route rationalization and fiscal prudence, Jet Airways said.
11/11/11 Times of India

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Categories: Jet Airways Nov 2011, Kingfisher Nov 2011