India's Jet Airways reports loss, shares plummet

Jet Airways, India's second-biggest domestic airline, reported on Tuesday a second-quarter net loss blamed on low air traffic, a strike by pilots and overcapacity.

The airline posted a net loss of 4.06 billion rupees (88 million dollars) for the quarter ending September, from a loss of 3.84 billion rupees a year earlier.

Jet shares fell 36.4 rupees or 9.05 percent to 365.8 on the Mumbai stock exchange on Tuesday.

"The company suffered losses mainly from lower yields, due to intense competition and overcapacity," Jet executive director Saroj Dutta said in a statement to the Mumbai stock exchange.

Revenues for the quarter fell 25 percent to 23.2 billion rupees.

Jet said disruptions in September due to a pilots' strike also contributed to the losses.

Jet's pilots went on a five-day walk-out, taking mass sick leave after the management sacked two senior pilots for setting up an unrecognised trade union.

Thousands of Jet customers were forced to change their travel plans in one of the biggest aviation disruptions in India in recent years, affecting hundreds of domestic and international services.

India's airline sector was once vaunted as a symbol of the country's economic vibrancy but its fortunes have nosedived due to over-expansion, a slowing economy, intense competition and expensive fuel costs.

Losses for the entire sector last year are estimated at two billion dollars of which state-run carrier Air India accounted for half.

In October last year, Jet struck an alliance with fierce rival Kingfisher Airlines to help both carriers battle slowing passenger growth and high fuel costs which have pushed up fares.

Higher fares have brought travellers back to India's extensive and less expensive train network or cars.

Private carrier Jet, which flies to London, New York, Toronto, Singapore and other international destinations as well as to most Indian cities, operates 365 domestic and 74 international flights daily.