Jet Airways, India's second-largest airline carrier based in Mumbai, lost about Rs 263 crore in just one day of stock market trading in the market capitalisation on news reports that it 'can't fly beyond 60 days'.
Jet Airways, India’s second-largest airline carrier based in Mumbai, lost about Rs 263 crore in just one-day of stock market trading in the market capitalisation on news reports that it ‘can’t fly beyond 60 days’. Jet Airways denied the news reports saying the statement appeared in media is “incorrect and malicious”. Jet Airways share price went deeper into losses after opening marginally lower at Rs 324.8, down 1.93% on BSE today.
In the afternoon deals on Friday, Jet Airways shares hit a day’s bottom of Rs 301.25, down 9.04% on BSE while the stock touched a low of Rs 301.1, down 9.07 on NSE. Jet Airways clarification to the news report came in at 3:14 pm in which it denied “any talks of stake sale”.
“In line with the company’s stated focus of creating a healthier and more resilient business, it has been implementing several measures to help it reduce cost as well as realise higher revenues, for desired business efficiencies. Some of these areas include sales and distribution, payroll, and maintenance, among many others,” Jet Airways said in an exchange filing.
Following the clarification from the company, Jet Airways share price recovered a little to Rs 310.5, up 3.07% from day’s low of Rs 301.25 but again fell down. Jet Airways shares ended down 7% at Rs 308 on BSE whereas the stock concluded 7.23% lower at Rs 307.2 on NSE. With such a sharp drop in share prices, Jet Airways lost as much as Rs 263 in the market capitalisation to Rs 3,498.8 crore. Earlier yesterday, Jet Airways held a market capitalisation of Rs 3,762.35 crore on BSE.
“As part of these measures, the company has been in dialogue with its key stakeholders, including its pilots and engineers, to apprise them of the challenges being faced by the aviation sector in India generally and by the company in particular and to enlist their full support and cooperation for realising necessary savings across all functions of the business,” Jet Airways said further.