Mumbai: India’s second-ranked airline by passengers, Jet Airways (India) Ltd, will consider options to raise capital at its board meeting on 24 July, it told the Bombay Stock Exchange. The meeting has been called to discuss the airline’s first quarter results.
Fingers crossed: The airline is expected to report better results for the first quarter on account of higher fares and a cut in capacity. Hemant Mishra / Mint
People familiar with the matter said on condition of anonymity that airline may raise $300-400 million (around Rs1,452-1,936 crore), for which it is exploring options such as debt and sale of global depository receipts (GDRs).
Jet Airways executive director Saroj Datta refused comment saying, “We are in the quiet period and can make no comments.”
Jet Airways may not raise this amount immediately and may only take enabling provisions in the 24 July board meeting. The airline expects to break even this year and the people said that is when the carrier may raise the money.
The airline may use the proceeds to buy aircraft and to repay dues to oil companies. Jet Airways owed Rs688 crore to oil marketing firms as on 31 March.
The airline is expected to report better results for the first quarter against the same quarter last year, the people said. They said it may report an increase in revenue, although its occupancy per flight has decreased.
Analysts say better revenue for Jet Airways is on account of higher fares and a 30% cut in capacity on both domestic and international routes.