Jet Airways is going through trouble times due to constant rise in prices of crude oil and a visible stress on its balance sheets.
Jet Airways is going through trouble times due to constant rise in prices of crude oil and a visible stress on its balance sheets. Jet Airways had reported a net loss of Rs 1,040 crore for the fourth quarter in comparison to the Rs 583 crore profit in Q4 FY17. Recently, Jet Airways had reportedly asked its pilots to take a pay cut of at least 25 per cent which, however, got rejected.
Later, reports surfaced that Jet Airways had agree to not to go ahead with 25 per cent pay cut from pilots' salaries but now it has been reported that the airline might fire 500 of its ground staff. Citing sources, a report in the Financial Express claimed that the airline is likely to issue pink slips to about 500 of its ground services staff and also rationalise the number of its cabin crew on its Boeing and Airbus fleet.
On Friday too, shares of Jet Airways came under massive selling pressure, tumbling 8.5 per cent, after the company deferred announcement of its June quarter earnings.
The stock slumped 8.39 per cent to end at Rs 276.40 on the BSE. Intra-day, it dropped 13.29 per cent to Rs 261.60 -- its 52-week low.
On the NSE, shares of the company plunged 8.53 per cent to close at Rs 276.
In a BSE filing late last night, the Naresh Goyal-run airline said the board of directors has decided not to review the unaudited financial performance for the June quarter.
The company's market valuation fell by Rs 287.17 crore to Rs 3,139.83 crore on the BSE.
In terms of equity volume, 22.30 lakh shares of the company were traded on the BSE and over 2 crore shares changed hands on the NSE during the day.
The company's stock has been on a downtrend for the sixth straight session, plunging 16.5 per cent.
The stock has fallen by nearly 67 per cent so far this year.
Meanwhile, market regulator Sebi is looking into Jet Airways' deferring the announcement of June quarter results following reservations expressed by the airline's audit committee while stock exchanges have also sought information from the company, PTI reported citing sources.
The board of directors of Jet Airways, which is grappling with financial woes, on August 9 deferred the matter of consideration of the unaudited financial results for the June quarter.
Sources further said that Sebi is looking into the airline delaying June quarter results after the carrier's audit committee expressed reservations.
The regulator is concerned about any possible lapses in terms of disclosure and corporate governance norms by Jet Airways. Sebi is also in touch with the stock exchanges on the Jet Airways matter, they added.
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 "Jet Airways facing cash crisis: What you need to know")
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