Jet posts Rs 588 cr Q3 loss; board approves lenders' rescue package

NEW DELHI: Jet Airways reported its fourth consecutive quarterly loss on Thursday because it battles a financial crunch due to higher oil prices and intense pageant at home. The airline made a internet lack of Rs 588 crore ($83 million) for the three months ended December 31, compared with a benefit of Rs 165 crore a yr previous.

Revenue from operations stood at Rs 6,148 crore within the December quarter in opposition to Rs 6,086 crore posted in the same period final yr, the carrier stated in a observation to exchanges.

Total bills within the 3rd quarter shot up to Rs 6,786.15 crore as in comparison to Rs 6,042.58 crore in the same quarter final fiscal.

Aircraft fuel bills stood at Rs 2,387.72 crore as in comparison to Rs 1,840.08 crore within the corresponding period final yr, whilst aircraft and engines rent rentals have been at Rs 730.35 crore as in opposition to Rs 583.67 crore.

Jet additionally stated that its board had authorized a plan via lenders, led via State Bank of India (SBI), that can give the debt-laden Indian airline investment crucial for its survival.

"The BLPRP (Bank Led Provisional Resolution Plan) currently estimates a funding gap of Rs 8,500 crore (including proposed repayment of aircraft debt of Rs 1,700 crore) to be met by appropriate mix of equity infusion, debt restructuring, sale / sale and lease back/ refinancing of aircraft, among other things," the corporate stated in some other observation.

Jet, saddled with over $1 billion in debt, had a rough 2018 as pageant intensified within the Indian airline market, the rupee depreciated and top oil prices squeezed margins.


The airline will seek approval from its shareholders at a gathering on February 21 for conversion of its debt into 114 million shares. It currently has 113.6 million shares on factor. The plan offers lenders the ability to appoint nominees to the airline's board.


Jet stated that after its approval the plan might be offered again to the lenders, in addition to to an overseeing committee of the Indian Bankers' Association, the board of shareholder Etihad Airways and Jet's founder and chairman Naresh Goyal.


Abu Dhabi's Etihad, which owns 24 consistent with cent of Jet, bailed out the Indian airline in 2013, paying $600 million for a 24 consistent with cent stake in Jet, 3 take-off and touchdown slots in London Heathrow and a majority share in Jet's frequent flyer programme.


(With company inputs)
Jet posts Rs 588 cr Q3 loss; board approves lenders' rescue package Jet posts Rs 588 cr Q3 loss; board approves lenders' rescue package Reviewed by Kailash on February 14, 2019 Rating: 5
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