All Indian airlines are suffering from loss. The sudden rise in the fuel prices is the major factor responsible for their loss. Jet airways announced its maximum loss in last three years. Decreasing domestic traffic is also responsible for the losses of these airlines. For the fourth quarter ended March 2008, Jet incurred a loss of Rs 221.18 crore compared to a net profit of Rs 88 crore for the corresponding quarter in the previous fiscal as fuel prices touched a record high. Sales for the period increased 37% to Rs 2,727 crore as compared to Rs 1,989 crore.

According to these companies the fuel prices are quite high in India. Jet fuel prices are about three-quarters higher as compared to international standards due to local taxes. This increase in fuel price will end in increase fuel surcharges on tickets. The increase in fuel prices has increased operating costs of these airways from 45% to 90%. India’s scheduled aviation Companies are expected to double their combined losses to Rs 8,000 crore from Rs 4,000 crore last fiscal, the minister for civil aviation, Praful Patel said earlier this month. This hike has sent a wave of gloom in airways that are already suffering due to cut-throat competition and reduced domestic traffic.

"The next few quarters are expected to be impacted negatively by very high fuel prices as we have seen in the months of April, May and June," Jet said.

Jet Airways stock price fell 0.3% to Rs 517.8 at the close of trading on the Bombay Stock exchange on Tuesday.

Jet is planning to expand overseas routes to compensate for the losses. 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. It is planning to start services to Dubai and Saudi Arabia by October.