Jet Airways says evaluating funding options to meet liquidity requirements
Airline working on multiple revenue enhancement, cost cutting measures
Mumbai: Jet Airways on Monday said the company was evaluating various funding options to meet its liquidity requirements on priority. The airline added it was pro-actively working on multiple revenue enhancement, cost cutting measures, which were already delivering results, and it remained committed to turning around its business.
The Naresh Goyal-led airline also dismissed reports of move to monetise investment in the frequent flier programme, Jet Privilege as purely speculative, and said the company’s relationship with its strategic partner, Etihad Airways, was very strong and was growing further.
Responding to a clarification sought by the BSE on Monday on the postponement of its first-quarter results, the airline said there was no differences of opinion whatsoever between the company and its statutory auditors.
The airline’s stock fell more than 13% on the BSE on Friday. It, However, recovered some ground to end 4% up on the BSE on Monday. The firm’s total debt ballooned to 55.4 times earnings before interest and tax as of 31 March, compared with 4.9 times the previous year, according to data compiled by Bloomberg. The probability of the airline failing to repay its obligations in the next 12 months is near the highest since October 2015, according to a Bloomberg Default Risk model, which tracks metrics including share price, debt and cash flow.