Jet Airways, one of India's two main domestic airlines, is likely to report its second loss ever in the fiscal year to March 2003 because of flat demand in the aviation industry, a company official said.

Unlisted Jet Airways (India) Pvt Ltd, estimated to have a 45 per cent share of the local air travel market, began operations in May 1993.

The Jet official, who declined to be identified, said the airline was 'not likely' to report a profit this year partly due to a flat air travel market.

"There has been only a very marginal increase in the air travel market, about 2-3 per cent and that too because of the APEX (advance purchase of tickets) fares," the official said.

Jet and Indian Airlines, which also has about 45 per cent share of the domestic air travel market, cut fares by nearly 50 per cent in July on some routes to revive stagnant demand.

The fare cuts helped boost demand but the domestic airline industry has been hurt by higher aviation fuel prices, landing and navigation charges and mounting insurance costs, industry officials say.

The Jet official said he hoped air travel demand would rise this year helped by a reviving economy.

Jet has a fleet of 33 Boeing 737s and eight ATR72-500 turbo-prop aircraft flying more than 250 flights daily to 41 destinations within India.

State-owned Indian Airlines Ltd, privately-owned Jet's main rival and a monopoly until 1993 when the industry was thrown open to private airlines, said last month it would report a third straight annual loss in 2002-03 (April-March).

It blamed a massive fuel price rise and a flat domestic travel market for the losses.

The country's third domestic airline, the much smaller Air Sahara, is also privately owned and does not declare results.