Jet Airways on Monday reported net loss of Rs 1,326 crore in the first quarter of the financial year that ended in June 2018. India’s oldest private airline has decided to incorporate further cost cutting measures, debt reduction and funding options as part of its turnaround plan.
The plan includes “infusion of capital, monetisation of assets including the airline’s stake in its loyalty programme”. Jet Airways Chief Executive Officer Vinay Dube said some of the transformation measures that were implemented had already started yielding positive results.
“Macroeconomic factors led by an increase in Brent fuel price by more than 36%, a depreciating rupee and the resulting mismatch between high fuel prices and low fares primarily undermined Jet Airways’ performance in the quarter,” the company said in a statement.
On August 2, Jet Airways said it had asked its employees to take a pay cut of up to 25%. “Jet Airways has been implementing several measures to help it reduce cost as well as realise higher revenues for desired business efficiencies,” the airline said in a statement. The National Aviators Guild, which is the airline pilots’ union, asked employees not to accept the management’s decision.
On August 10, share prices of Jet Airways fell by 13.3% on the BSE and 14.5% on the National Stock Exchange to hit a three-year low, a day after it deferred its earnings report for the first quarter of the 2018-’19 financial year. Jet Airways Chairperson Naresh Goyal had said at the firm’s annual general meeting that he was feeling “guilty and embarrassed” as shareholders have lost a lot of money, PTI reported.