Jet Airways, the country’s largest airline by market share, on Friday reported a loss

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of Rs 713.60 crore for the July-September quarter, — its second consecutive quarter — due to high aviation turbine fuel (ATF) prices and a steep depreciation of rupee against the US dollar. The company reported a loss of Rs 275.66 crore on account of unrealised exchange loss during the July-September 2011 period compared to a gain of Rs 37.42 crore during the same period the previous year.

The total income of the airline rose 7.36 per cent to Rs 3,293.54 crore during the period.

“The quarter’s results have been adversely impacted due to high ATF prices and a steep decline in the value of rupee against the US dollar. The airlines have been progressively increasing the fares to pass on the rising input cost including the cost of ATF,” Jet Airways said in a statement to the stock exchanges on Friday.

During the second quarter, fuel costs for the company went up by 50 per cent to Rs 1,491.18 crore in the July-September 2011 period, compared to Rs 994.21 crore in the same period previous year.

Jet Airways further said it was exploring various options to sustain cash flow. “The management is actively pursuing various options to improve the operating results and cash flows through sale and lease back of aircraft, route rationalisation and cost control measures,” the airline further said in the statement.

Nikos Kardassis, chief executive officer of Jet Airways, said in a statement that the airline will also be doing a sale and lease back of some of its aircraft to repay existing high cost working capital loans.

The statement further said the company continues to explore options to raise finances to meets its various short- and long-term obligations including financial support to the subsidiary — JetLite. These measures would result in sustainable cash flows,” the company said in its notes of the result. JetLite reported loss of Rs 10.08 crore during the quarter gone by.

Combined (Jet Airways and JetLite) operating margin of 3.6 per cent for the Q2 FY11.

“The traffic in the Indian domestic market continues to grow in double digits. This, along with the succeeding peak season, will help airlines to improve yields hereon,” Jet Airways said.

It further said that international operations continue to achieve a seat factor of around 80 per cent. “We expect the yields to improve further on account of the peak season. It is our endeavour to enrich guest experience by our constant product & service innovation and ever improving network connectivity. Our business and first class seat factors are holding and we should see further improvement going forward in Q3,” the statement said.

The shares of the company closed at Rs 265.35 per share, up by 2.16 per cent on the Bombay Stock Exchange on Friday.