(Bloomberg) -- Jet Airways India Ltd. saw both current- and non-current liabilities surge in the second quarter, after intense competition and low fares led to its third consecutive quarterly loss.
- Current liabilities rose to 160 billion rupees ($2.2 billion) as of Sept. 30, compared with 142 billion rupees as of March 31, while non-current liabilities jumped 30 percent during the same period.
Key Insights
- The loss at the nation's biggest full-service carrier is the latest sign that Indian airlines are struggling to survive in a market where competition has depressed fares and high fuel prices negate gains from a surge in demand for air travel.
- Jet Airways continues to engage with financial stakeholders to support funding requirements. It has started a review of its network, including capacity and flight frequencies, signaling some loss-making routes will be cut.
- The Mumbai-based carrier isn't the only one in trouble. IndiGo, the low-cost operator, reported a quarterly loss for the first time as a publicly traded company for the three months through September. SpiceJet Ltd., a budget carrier, has said it's seeking more time to pay for leased aircraft.
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- Jet Airways, which hasn't made a profit in nine of the past 11 fiscal years, has been seeking to raise funds to ease a cash crunch. Last month, it said it received notices from aircraft leasing companies about late payments or contract defaults.
- Jet Airways shares have slumped 71 percent this year, shrinking its market value to $377.5 million. Besides pledging to cut costs, the board in August proposed to pare debt and sell the carrier's stake in JetPrivilege, a loyalty program.
- Read more about the news here.
To contact the reporters on this story: Rahul Satija in Mumbai at rsatija1@bloomberg.net;Anurag Kotoky in London at akotoky@bloomberg.net
To contact the editors responsible for this story: Sam Nagarajan at samnagarajan@bloomberg.net, John Bowker, Tara Patel
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