Jet Airways nears 52-week low; stock skids 9%
Shares of Jet Airways (India) have slipped 9% to Rs 302 per share on the BSE in intra-day trade after the media reports suggested that the airline will be unable to fly beyond 60 days unless cost-cutting measures including pay cuts are put in place. The stock was trading close to its 52-week low of Rs 297 touched on July 19, 2018 in intra-day trade.
The management team, including Chairman Naresh Goyal, has informed employees in face-to-face meetings in recent days in Mumbai and Delhi that the airline's financials are in a bad shape and drastic measures needed to be taken to cut costs.
The airline company will not be able to fly beyond 60 days unless cost-cutting measures </a>including pay cuts are put in place, and it has approached investment bankers again to help sell a stake in the carrier, local media reports said on Friday.
The BSE said that the exchange has sought clarification from Jet Airways (India) on August 03, 2018, with reference to news appeared on Economictimes.indiatimes.com quoting "Can't fly beyond 60 days, Jet Airways tells staff". The reply is awaited.
The stock of Jet Airways (India) has fallen 66% from its 52-week high level of Rs 883 touched on January 5, 2018 on the BSE. Since May 23, it slipped 28% after the airline company had reported a net loss of Rs 10.40 billion in fourth quarter of FY 2018 on rising costs and sharp fall in other income. In the same period last year, the airline had made a net profit of Rs 5.83 billion.
The board directors of Jet Airways (India) are scheduled to meet on August 10, 2018 to approve the unaudited financial statements for the first quarter ended June 30, 2018.
InterGlobe Aviation (owner of airline IndiGo) on Monday had reported a 96% year on year (yoy) decline in net profit at Rs 278 million in June 2018 (Q1FY19) quarter. The profitability was majorly impacted by the adverse impact of foreign exchange, high fuel prices and the competitive fare environment.
At 01:18 PM; Jet Airways (India) was trading 8% lower at Rs 304 on the BSE on back of more than three-fold jump in trading volumes. A combined 13.66 million equity shares changed hands on the BSE and NSE.