INDIA: Jet Airways posts loss at hands of fuel prices

Joining the swelling ranks of victims of the record high oil prices, India’s Jet Airways slipped into a full-year loss of INR2.53 billion (US$58.9 million), a reversal from the INR280 million profit it reported in the year ended March 31, 2007, and its JetLite subsidiary suffered even heavier losses. “Over the past few months, the […]


Joining the swelling ranks of victims of the record high oil prices, India’s Jet Airways slipped into a full-year loss of INR2.53 billion (US$58.9 million), a reversal from the INR280 million profit it reported in the year ended March 31, 2007, and its JetLite subsidiary suffered even heavier losses.

“Over the past few months, the aviation industry worldwide has been facing the effects of continuing increases in crude oil prices,” Jet said. “The situation in India is further exacerbated by continuing over capacity as well as the fact that the operating costs in the Indian environment have always been higher than other comparable countries.”

Jet’s full-year revenue rose 28 per cent to INR94.82 billion as passenger numbers climbed 6.5 per cent to 11.4 million. JetLite, formerly Air Sahara, reported a pre-tax loss of INR4.4 billion, narrowed from a INR6.89 billion deficit in the prior fiscal year.

Jet Airways currently operates a fleet of ten 777-300ERs, 54 737s, nine A330-200s and 11 ATR 72-500s to 62 destinations. JetLite flies 17 737s and seven CRJ200s to 31 mostly domestic airports.

Looking ahead, Jet said the next few quarters will be “impacted negatively” by high fuel prices, adding that the Indian industry as a whole lost US$1 billion in the recently completed fiscal year and possibly will lose US$2 billion in the current year. It also said that demand is “tapering off ” due to fuel surcharges.