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Jet Airways receives $35m in prepaid ticket purchases

Jet Airways has received $35 million via a "prepaid ticket purchase agreement" with its loyalty programme unit, Jet Privilege.

In a statement to FlightGlobal, Jet says the agreement was conducted "under normal course of business", and that Jet Privilege "regularly purchases these tickets to offer its members against redemption of miles".

Jet did not specify what the funds will be used for, but it is widely expected to serve as a lifeline to the carrier, which has been in financial difficulty.

Severe losses caused by steep increases in jet fuel prices, as well as the depreciation of the Indian rupee have led its credit ratings to be cut systematically over the past several months.

Jet has been exploring an equity infusion and the monetising of assets, such as its loyalty programme.

This comes after it reported a loss before tax of Rs13.2 billion ($198 million) for the quarter ended 30 June, reversing its profit before tax of Rs53.5 million from the previous corresponding period.

Abu Dhabi-based Etihad has a 50.1% stake in Jet Privilege, as well as a 24% stake in the airline.

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