New Delhi: Cash-strapped airline, Jet Airways on Monday evening announced its worst quarterly earnings since the air carrier commenced its operation in 1993.
Air carrier faced a net loss of Rs 1,297 crores in the second quarter ending September 30, 2018. Even in the state of loss, there is a 9.5 % growth in revenue as compared to the same quarter last year.
In the same quarter last year, the profit of the airline carrier was recorded at Rs 49.6 crore.
Several factors including a hike in fuel prices, tough market competition and the weakening of domestic currency are the factors being reported behind the air carrier’s major loss.
Before the official announcements of financial figures, business analysts were expecting that the air-carrier can sustain a loss up to Rs 2,000 crore for the second quarter of the financial year 2019.
Several media reports also stated that the founder chairman of the airline, Naresh Goyal is trying to woo potential investors such as Tata Sons and commercial airline partner Delta Air Lines.
Meanwhile, Jet Airways independent director Vikram Singh Mehta resigned on November 9. Mehta’s resignation came days before the air-carrier’s announcement of its Q2 result.
On November 3, the second-largest airline in India had urged their travel agents to sell its tickets to avail of last year’s incentives.
Earlier, Jet Airways had reportedly offered its pilots an option to leave the airline without serving a notice period as the cash-strapped carrier aims to cut capacity and scale down its operations.
Media reports also claim that in the past few months, more than 50 Jet Airways pilots have resigned, with a majority of them serving a notice period of just 48 hours.