InvestorQ : Why has Jet Airways reported such a huge loss for the financial year 2020-21?
manisha Kolvenkar made post

Why has Jet Airways reported such a huge loss for the financial year 2020-21?

Crowny Pinto answered.
6 months ago

In a way, the financial year 2019-20 will go down as a zero year for Jet Airways. The airline shut down operations with effect from 18 April 2019 and 17 April was its last official flight. That means; for almost the entire financial year 2019-20, outside of those 17 days, the company has been without any worthwhile operating revenues.

For the financial year 2019-20, the beleaguered airline reported an overall consolidated net loss of Rs.2,841 crore. This was on the back of total income of Rs.354 crore. This pertained to the 17 days it was in operations and the miscellaneous income flows it got in the subsequent months of the fiscal year. The fixed commitments continued for much longer.

It may be recollected that in fiscal 2018-19, Jet Airways had reported total top line income of Rs.5,536 crore. However, it could not match that performance in the next financial year as it was grounded within just 17 days of the new fiscal year. The grounding was on account of consistent losses and a major liquidity crunch, which made flying impossible.

Jet has been under insolvency proceedings since the last 2 years with a slew of global investors evincing interest to take over the airline and start operations all over again. However, it is still not too clear as to when the deal will achieve fruition and the operations will actually start for Jet Airways on a full-fledged basis.