The high cost of fuel makes the Jet Airways runway cost effective, airlines slip in the second quarter to post a loss of 1,297 crore Rs

Jet Airways announced Monday a loss of 1,297 crore for the September quarter, the cost of fuel having risen nearly 60% over the previous year, exceeding the increase of nearly 10% in his income.

Loss of 1,297 million rupees for the September quarter, fuel costs having risen nearly 60% over the previous year, exceeding the increase of nearly 10% in revenue.

The depreciation of the rupee and stiff competition among carriers also affected the quarter's results. In the second quarter of year 18, the airline announced a small profit of 50 billion rupees.
This is the third consecutive quarter of losses for the troubled airline that may soon be sold by promoter Naresh Goyal. The Tata group is among the interested parties. Jet is struggling to make ends meet and is delaying wages and grounding aircraft.

It is estimated that the average domestic rates during the September quarter were about 7% lower than a year ago due to stiff competition among airlines. As a result, Jet yields remained stable at Rs 4.8 per kilometer. However, the seat occupancy rate was slightly higher at 84% compared to 81.5% in the second quarter of 2016.
Jet reported a net loss of 1,323 crores in the first quarter of fiscal year 19, while his losses for the fourth quarter were 1,036 crores. The loss of the airline was slightly higher than Bloomberg's estimate of 100,000 Rupees.

Credit rating agencies downgraded Jet Airways' debt, raising concerns among investors about its future. Jet is now looking to raise funds through the sale of shares and is in talks with the Tata Group and the Delta Air Lines airline in Atlanta.
During the second quarter of year 19, the operating revenues of the airline amounted to 6,161 crore, an increase of 9.5% per annum. on the year. The fuel bill, which accounts for nearly 40 percent of the airline's total expenses, rose 58.6 percent year on year to Rs.2,419 million. According to oil marketing company Indian Oil, jet fuel prices rose 42 percent year-over-year to 68,879 rupees per kiloliter in New Delhi during the second quarter of year 19.
Crisil rating agency predicted the largest losses for domestic carriers during the decade fuel costs and higher currency losses. "To offset the increase in operating costs, the industry will have to raise average rates by 12%. However, the aggressive expansion plans of carriers and the drive to maintain high PLFs will maintain the intensity of competition and limit their ability to raise fares, "said Sachin Gupta, senior director of Crisil Ratings,
. 7.3% quarter-on-quarter in September, bringing the available seat-kilometers from $ 14.2 billion to $ 15.2 billion (1945)
The exchange rate fluctuation Is set at 416 crores for the quarter ended in September. The value of the rupee fell 11 percent year-on-year, falling to US $ 71 per US dollar in the September quarter.

Jet Airways earnings before interest, taxes, depreciation and amortization (Ebitdar) fell 76.6% year on year to 195 rupees. Q2FY19 crore Rs 836 a year ago. Ebitdar's margin fell by 1,170 basis points to just 3.1%, up from 14.8% in the second quarter of fiscal year 18.
Analysts believe earnings will remain under pressure in the near future. "We do not see any relief in the short term as airlines continue to sell low-cost seats to meet their immediate working capital needs," badysts at brokerage firm Axis Capital said.
The beleaguered carrier has launched a cost-cutting program covering to reduce maintenance costs, selling and distribution costs, fuel and optimization rates, debt reduction and cost of ownership. Interests, among other operational parameters.