Mumbai: Private carrier Jet Airways on Friday said it has posted a loss of Rs 101.22 crore for the quarter ended 31 December against a net profit of Rs 118.23 crore for the same quarter of the previous year.
    
"High fuel prices together with the depreciating Indian rupee versus US dollar have pulled down the operating results to an extent. However yield improvements due to seasonality and narrowing gap between demand supply imbalances have helped the airlines to post operating profits," Jet Airways (India) Ltd's CEO, Nikos Kardassis, said.
    
He said the airline would continue to remain competitive through innovative marketing initiatives, increase in ancillary revenues, an enduring focus on cost-cutting measures through contract renegotiation, and process improvements across all segments of the business.
    
"The weakening of Indian rupee against the US dollar has had an impact on the US dollar-related costs including for the aviation turbine fuel (ATF) because the same is priced in US dollars. Though we have a natural hedge in terms of our US dollar earnings to a big extent, we are still impacted because of the same and this is largely uncontrollable in the short term. Consequently, many of the cost line items have a currency impact embedded in it," an official statement said.

The statement said that ATF prices and rupee depreciation would continue to be a cause of concern for the short term. Though Q4 passenger bookings show encouraging trends, it is expected to reflect some seasonality.
    
We continue to see a steady increase in our corporate and business class bookings over the last few weeks, given what has been happening in the industry and with competition.
We do not see any major slowdown in our international bookings into or out of Europe and North America," the statement said.
    
The airline expects the Indian domestic market to continue growing at 12 percent to 15 percent in the short to medium term. The capacity induction in the market has slowed down giving considerable scope to airlines to push for higher yields and the airline saw some semblance of this from November 2011, the statement said.
    
The airline said its international operations continue to achieve seat factor of around 80 percent even in a troubled financial environment in the West.
    
The airline also hopes to complete the transition from Jetlite to Jet Konnect during this quarter, which will enable it to consolidate its market leadership position with two strong brands. Its fund-raising initiatives are well on track and it has realised monies from the Bandra-Kurla Complex deal, as well as through sale and lease back of engines in Q3, the statement said.
   
"We expect to complete the sale and lease back of some of our B-737 aircraft during the fourth quarter which will not only help us pay off high cost rupee debt, but also in paying off some working capital loans from the surplus cash that we will generate," the statement said.

(Agencies)