Jet Airways stock erases early losses; gains nearly 5%

Jet Airways stock erased all its early losses and ended with nearly 5 per cent gain today following the announcement of a turnaround plan.

The stock bounced back from intra-day low -- down 3.5 per cent -- and jumped 4.61 per cent to end at Rs 294.80 on BSE. During the day, it soared 7.62 per cent to Rs 303.30. The scrip had opened nearly 3 per cent lower.

On NSE, shares of the company closed at Rs 295.45, up 4.67 per cent.

Cash-strapped Jet Airways, which yesterday reported a whopping Rs 1,323 crore net loss for the June quarter due to higher fuel cost, falling rupee and low fares, said it will monetise loyalty programme JetPrivilege and wet-lease some of its small aircraft to mobilise urgent working capital.

The airline had booked net profit of Rs 53.50 crore in the year-ago period, while in the March quarter it had reported net loss of Rs 1,036 crore.

The second back-to-back quarterly loss forced Jet Airways, which delayed the result announcement on August 9 indefinitely, to announce a turnaround plan which, according to chairman Naresh Goyal, includes a capital infusion by selling a stake in JetPrivilege, and a massive cost cutting to save around Rs 2,000-crore over the next two years.

"The board considered two significant proposals: infusion of capital and monetisation of the airlines' stake in the loyalty programme," Goyal said.