InvestorQ : What explains the vast jump in the losses reported by Jet Airways for the March quarter?
Katherine Gonsalves made post

What explains the vast jump in the losses reported by Jet Airways for the March quarter?

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Rutuja Nigam answered.
3 months ago
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Net losses at Jet Airways for the full fiscal year 2020 shot up to Rs.5538 crore for the fiscal year 2019-20. Revenue was only marginally down by 2.6% to Rs.23,314 crore. The airline had grounded its operations in April 2019, after it ran out of money to meet its debt repayment obligations.

Jet Airways fuel costs jumped by 24.8 percent to Rs8680 crore in the year ending March 31, 2019. Its finance cost also increased significantly, by 16.5 percent in the year to Rs 981 crore. The biggest jump under other expenses that hurt the company most was forex losses. These zoomed to Rs 448 crore for the year, from Rs 47 crore in the year-ago period.

The airline board had approved a debt resolution plan that was proposed by the lenders which was not enough as the carrier soon started defaulting on payments. Eventually, Jet Airways was taken to the insolvency courts by banks, in June 2019.

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