The stock opened 3% lower at Rs 272 after Jet Airways reported a net loss of Rs 13.26 billion in the April-June (Q1) quarter of 2018-19 (FY19). This is the airline’s third-highest quarterly loss.
Jet Airways on Monday said it will seek capital infusion and sell the stake in its loyalty programme after reporting a net loss of Rs 13.26 billion in the April-June (Q1) quarter of 2018-19 (FY19). This is the airline’s third-highest quarterly loss. It had posted a net profit of Rs 540 million in the same quarter last fiscal.
The company said macroeconomic factors led by an increase in Brent fuel price by more than 36%, a depreciating rupee and the resulting mismatch between high fuel prices and low fares primarily undermined Jet Airways’ performance in the quarter.
The board also considered various cost cutting measures, debt reduction and funding options, including infusion of capital, monetisation of assets including the company’s stake in its loyalty programme.
“The two significant proposals considered by the Board of Directors today i.e. infusion of capital and the monetization of the airline’s stake in its Loyalty programme bode well for the long term financial health and sustainability of the airline.”, said Naresh Goyal, Chairman Jet Airways.
At 03:27 pm; Jet Airways was trading 7% higher at Rs 303 on the BSE. The trading volumes on the counter more than doubled with a combined 25.94 million equity shares changed hands on the BSE and NSE.
Despite of today’ gain, Jet Airways has underperformed the market by falling 60% in past three months as compared to 14% rise in the benchmark index during the period.