India’s private carrier Jet Airways shows Q1 net loss

India’s largest private sector airline, Jet Airways, reported Friday it swung to a first-quarter net loss from a profit in the same period a year earlier, hit by over-capacity and high interest costs.

The company said it posted a net loss of 2.25 billion rupees (46 million dollars) for the three months to June compared with a net profit of 1.43 billion rupees for the same period a year earlier.Total income for the quarter fell 16.2 percent to 24.22 billion rupees.

“The company suffered losses mainly due to lower yields due to intense competition and over-capacity besides high interest costs,” Jet said in a statement to the Mumbai stock exchange.

Jet shares edged up 1.05 rupees or 0.43 percent to close at 247 rupees ahead of the earnings announcement.

India’s struggling aviation sector was once a vibrant symbol of India’s economic progress but it has seen its fortunes nosedive due to over-expansion and cut-throat competition.

Jet operates a fleet of 83 aircraft and flies to 64 destinations in India and abroad.

-AFP