New Delhi: The writing is on the wall -- for a fairly long time. The reports of full-service carrier Jet Airways' grounding in the next 60 days owing to severe resource crunch have stirred the aviation sector. The airline has refuted the reports but the speculations are flying thick and fast. Earlier this week, some reports suggested that Jet has asked employees to take salary cut of between 5 and 25 per cent to slash operating expenses.
The problem with Jet is no different from the rest of the industry -- revenues are sliding and costs are rising. For instance, in the fourth quarter of 2017/18, Jet posted net loss of Rs 1,036 crore, as compared to net profits of Rs 602.42 crore in the corresponding quarter of 2016/17. The revenue drop was visible in both international and domestic operations. International operations contributed 52.65 per cent to the consolidated revenues in 2017/18.
In a recent analyst call, the company Amit Agarwal, deputy CEO and CFO at Jet had said that "yields continue to be under pressure, and the Gulf market continues to remain weak...over the last two years, from fourth quarter fiscal 2016 to fourth quarter fiscal 2018, airfares remained flat whereas the fuel prices have doubled."
03/08/18 Manu Kaushik/Business Today
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The problem with Jet is no different from the rest of the industry -- revenues are sliding and costs are rising. For instance, in the fourth quarter of 2017/18, Jet posted net loss of Rs 1,036 crore, as compared to net profits of Rs 602.42 crore in the corresponding quarter of 2016/17. The revenue drop was visible in both international and domestic operations. International operations contributed 52.65 per cent to the consolidated revenues in 2017/18.
In a recent analyst call, the company Amit Agarwal, deputy CEO and CFO at Jet had said that "yields continue to be under pressure, and the Gulf market continues to remain weak...over the last two years, from fourth quarter fiscal 2016 to fourth quarter fiscal 2018, airfares remained flat whereas the fuel prices have doubled."
03/08/18 Manu Kaushik/Business Today
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