RPT-India's Jet Airways posts Q4 loss, sees tough times

(Repeats story issued late on Tuesday)

MUMBAI, June 24 (Reuters) - Jet Airways Ltd (JET.BO), India's top private airline, posted a loss for the March quarter on Tuesday on soaring fuel prices and slowing traffic growth and expected the next few quarters to be very challenging.

The price of Indian jet fuel, which accounts for nearly 45 percent of carriers' operating costs, has risen almost 90 percent since last June, deepening gloom in an industry already buffeted by stiff competition and price pressure. "The next few quarters is expected to be impacted negatively by very high fuel prices as we have seen in the months of April, May and June," Jet said. The company, controlled by billionaire chairman Naresh Goyal, reported a loss of 2.21 billion rupees ($51 million) in the quarter to March compared with a net profit of 880 million rupees a year ago. Revenue rose 37 percent to 27.3 billion rupees.

For the year to March 2008, it reported a loss of 2.53 billion rupees on revenue of 94.8 billion rupees.

India's civil aviation secretary has said high prices may cause local carriers' losses to double in 2008/09 from last year.

Domestic jet fuel prices are about three-quarters higher than international benchmarks due to local taxes, forcing airlines to increase fuel surcharges on tickets.

Jet said fuel surcharges on domestic operations had risen but basic fares were under pressure. Seat factor, a key measure of aircraft occupancy, slipped to 70.9 percent from 72.6 percent in the March quarter. The airline also said it took a charge of 690.1 million rupees due to losses in derivatives transactions in the March quarter.

Jet, which has been expanding overseas routes aggressively to get half its revenue from international operations by 2010, said it planned services to Dubai and Saudi Arabia by October.

International operations accounted for 42 percent of operating revenue in the March quarter, up from 23.7 percent in the year-ago period. "Though the very high oil prices are affecting demand on international sectors to some extent, our forward booking on international routes are as per our expectations," it said.

Plans to raise $400 million in a rights issue have been delayed due to turbulent financial markets. Jet shares, which have lost almost half their value this year, ended 0.5 percent up at 521.05 rupees in a weak Mumbai market. ($1=43 rupees) (Reporting by Narayanan Somasundaram; Editing by Charlotte Cooper)