As Jet Airways needs to raise money to maintain its operations, auditors to the company said in yet another sign of a crippling cash crunch in what was once described as one of the world's most promising airline markets.

Raising funds is important if the company's accounts are to be prepared on a "going concern" basis in the future, auditors Deloitte Haskins & Sells and Chaturvedi & Shah said in their limited review report of Jet's July-September financial results.

Jet Airways, which enjoys nearly a quarter of the market share, swung to a net loss in September quarter, compared with a profit a year ago, hurt by rising fuel prices and a forex loss in the quarter.

"Jet Airways is better relative to Kingfisher in terms of financial strength. I definitely think they will make a profit over the time and shore up their capital," said an analyst with a local brokerage who requested anonymity.

The company's shares rose as much as 4.5 percent in early deals on Wednesday, despite the auditor's comments. At 12.31 p.m. (0701 GMT), they were up 3.95 percent at 248.6 rupees.

"Jet Airways has a different business model ... They have a preponderous international fleet, adequate flight strength and they have been able to protect their market share. It will be able to meet its obligation to service debt," the analyst added.

Earlier this month, Jet had said it was looking at several "non-payroll areas" at cutting costs including plans to sell and lease back aircraft as well as cut interest costs by converting rupee loans into dollar debt.

India's airline sector is struggling under rising fuel costs and a heavy debt burden, making it tough for them to raise funds and forcing cancellation of aircraft orders.

The Centre for Asia Pacific Aviation (CAPA) has forecast a record $2.5-$3 billion loss for Indian airlines for the year ending March 2012.