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Despite Jet Airways reporting huge losses in FY15, chairman Naresh Goyal is hopeful of improving the financial situation in ensuing quarters.
Jet Airways has reported a net loss of Rs 2,100 crore or Rs 21 billion ($329 million) during FY15, down almost 50 per cent from corresponding year.
The airline, 24 per cent owned by Abu Dhabi's Etihad, has not made an annual profit since 2007, as tough competition and high operating costs in India's aviation industry make it difficult to turn a profit.
For the March quarter of FY15, Jet said it lost Rs 1,729 crore or Rs 17.29 billion, down from last year's Rs 2,154 crore or Rs 21.54 billion, its worst-ever.
Jet, India's second-biggest carrier by market share after privately held IndiGo, has announced a cost-cutting plan and said it expects to make a full-year profit in 2017.
The airline did manage to cut down on aviation fuel cost but its employee cost was higher due to new hiring in the year gone by.
Naresh Goyal, Chairman, Jet Airways, said: “FY15 was an encouraging year when we set out to change the fundamentals of this business, allowing us to deliver a significant improvement in our net result.”
He further said that the three-year turnaround plan Jet put in place last year is on track.
“While the Indian aviation market is still subject to ongoing structural challenges and robust competition is placing pressure on yields, we will continue to progress by focusing on delivering an enhanced experience for our guests and improving efficiency throughout the business,” said Goyal. (With input from Reuters)