Jet Airways CostCost of Jet Airways
The InterGlobe Aviation Ltd (INGL. NS), which operates IndiGo, the country's premier airline, announced a 97 per cent drop in profits last November. "Carriers have not been able to share these higher costs with customers through price increases," Dube said, and added that the sector has not been able to maintain such low tariffs in the long term, especially with higher petrol costs.
Jet's stock refueled early this week after postponing its profits because the board had not yet subscribed to it "until certain issues were closed". Jet, on Tuesday, also said it would be investing in its store, cutting its cost to over 20 billion crowns (285 million dollars) in two years and planning to raising money by divesting a share in its airline programme.
Part of the saving is achieved by cutting down on servicing and interest charges, selling expenditure and streamlining the aircraft population. Jet's CFO Amit Agarwal said to the analyst that the firm expected to cut approximately 3.7 billion crowns in service charges this year and expected a 6.5 billion crowns decrease from January 1, 2019.
Agarwal said that the company owned about 16 wide-body planes valued between 750 and 800 million dollars, on which it has debts of about 280 million dollars, and plans to sell and let back part of this family. Ray lifted $300 million during the quarter and through leasing incentives offered by banks to hit his operating and interest expenditures and down paying some debt, he said.
Sixty-four billion crowns. In addition, the company is planning to introduce 11 Boeing 737 MAX planes into its portfolio this financial year, which are 15-18 per cent more economical. At the end of June, the carrier recorded a 13,23 billion rupee deficit for the period, up from 535 million last year, despite a 6,4 per cent increase in revenues.
Rising Brent tariffs had a detrimental effect of more than 6 billion rubles in the period and currency translation loss totaled 3. 44 billion rubles, said Agarwal.