India’s second largest airline by market share, Jet Airways shows $35 million loss in Q1.
Announcing its sixth quarterly drop in a row, India’s Jet Airways shows $35 million loss in Q1 for this year, in a released company statement on August 11, 2014. The airline has been battling high costs and had to resort to low fares to counter fierce competition in the domestic market.
The company has not reported an annual profit for the past seven years. It is reportedly counting on cost cutting, besides the addition of more international routes, in a bid to reclaim its profitability in the next three years.
Currently, the airline is in the process of raising $150 million through external commercial borrowings (ECBs) within a month, in order to overcome a part of its heavy debt.
In India, even though there is an escalating demand for air travel, all except one of the largest airlines are drowning in tremendous losses.
Abu Dhabi’s Etihad Airways owns 24 percent stake in Jet Airways, which has so far helped in narrowing down the losses for the first quarter. This is mostly due to the two sharing resources and facilities.
Photo Credits: ETB News