MARKETS

Shares of India’s Jet Airways nosedive after earnings delay

A Jet Airways passenger aircraft takes off from Ahmedabad airport on August 12, 2013. (Reuters)

Shares in India’s Jet Airways tumbled more than eight percent on Friday after the embattled airline failed to release its latest quarterly earnings as scheduled.

Local media have raised concerns about India’s second-largest carrier, reporting it may cease flying in two months unless it makes major cost cuts.

Jet Airways slid 8.04 percent in morning trade, a day after it told the Bombay Stock Exchange that it was delaying releasing its first-quarter results until an unspecified date, “pending closure of certain matters,” it said in a filing.

Intense competition, rising jet fuel prices, and a weak rupee have been credited for eroding the profitability of Indian airlines, including Jet Airways, India’s number-two carrier by market share.

Last week the Economic Times reported that Jet needs to make major cost cuts or face having to shut down operations within 60 days.

The Mint financial daily reported that the airline was in talks with investors to raise cash. Jet Airways denied that it needed to take drastic measures.

Indian passenger numbers have increased six-fold over the past decade as customers take advantage of better connectivity and cheaper fares thanks to a host of low-cost airlines.

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Last Update: Friday, 10 August 2018 KSA 10:01 - GMT 07:01
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