Debt-laden Indian carrier Jet Airways Ltd will cut flights on less profitable routes and add capacity to more lucrative markets, as part of its effort to lower costs and boost revenues as it struggles to stay aloft.
Jet, India’s biggest full-service carrier posted its third straight quarterly loss on Monday, hurt by higher fuel expenses and a weaker rupee.
“The airline has embarked on a comprehensive review … The measures will include rationalisation of operations on select, uneconomic routes,” Jet said in a statement, adding that it will redeploy planes to more productive domestic and international sectors.
The review is expected to help deliver a more efficient and economically viable network, with a focus on profitability rather than market share, Jet, which is part-owned by Etihad Airways, said.
“With our clearly defined focus on profitability, we are in the midst of turning the ship around,” Jet’s Chief Executive Officer, Vinay Dube, said in the statement.
A combination of rising oil prices, high fuel taxes, a weak rupee, low fares and intense competition have slashed profits in the world’s fastest-growing aviation market, which is clocking 20 percent annual passenger growth.
13/11/18 Reuters/CNBC TV18