Jet Airways stock erases early losses, gains nearly 5%
Jet Airways stock bounced back from intra-day low — down 3.5% — and jumped 4.61% to end at ₹294.80 on BSE
New Delhi: Jet Airways stock erased all its early losses and ended with nearly 5% gain on Tuesday following the announcement of a turnaround plan. The stock bounced back from intra-day low — down 3.5% — and jumped 4.61% to end at Rs294.80 on BSE. During the day, it soared 7.62% to ₹303.30. The scrip had opened nearly 3% lower. On NSE, shares of the company closed at ₹295.45, up 4.67%.
Cash-strapped Jet Airways, which yesterday reported a whopping ₹1,323 crore net loss for the June quarter due to higher fuel cost, falling rupee and low fares, said it will monetise loyalty programme JetPrivilege and wet-lease some of its small aircraft to mobilise urgent working capital.
The airline had booked net profit of ₹53.50 crore in the year-ago period, while in the March quarter it had reported net loss of ₹1,036 crore. The second back-to-back quarterly loss forced Jet Airways, which delayed the result announcement on 9 August indefinitely, to announce a turnaround plan which, according to chairman Naresh Goyal, includes a capital infusion by selling a stake in JetPrivilege, and a massive cost cutting to save around ₹2,000-crore over the next two years.
“The board considered two significant proposals: infusion of capital and monetisation of the airlines’ stake in the loyalty programme,” Goyal said.
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