Jet Airways' shares fall as Q2 net loss soars eight-fold
Shares of Jet Airways on Thursday fell more than 6% in morning trade on the bourses after the Naresh Goyal-run airline reported an eight-fold increase in losses at Rs 891 crore in the September quarter.business Updated: Oct 24, 2013 13:50 IST
Shares of Jet Airways on Thursday fell more than 6% in morning trade on the bourses after the Naresh Goyal-run Jet Airways reported an eight-fold increase in losses at Rs 891 crore in the September quarter.
Jet Airways today blamed a steep fall in the rupee, slowdown in the domestic aviation market and rise in fuel costs for a sharp widening in standalone net loss at Rs 891 crore in the July-September quarter. It had logged Rs 99.7 crore loss in the year-ago period.
Reacting to the numbers, shares of Jet Airways opened on a weak note and then slumped 6.06% to Rs 325.05 on the BSE. Similar movement was witnessed on the National Stock Exchange as well where the company opened at Rs 330, then fell 6.42% to an intra-day low of Rs 324.15.
The decline in the counter assumes significance as the broader market was trading in the positive territory with significant gains. At 1126 hours, the 30-share benchmark index Sensex was trading at 20,943.49, higher by 175.61 points.
Market experts said the decline in the counter was largely because investors dumped the stock after the company reported its worst quarterly loss on record.
Jet Airways Group operates more than 550 flights a day with its two brands, the full-service Jet Airways and the low-cost JetLite.
The consolidated losses were much higher at Rs 998.5 crore. The airline did not offer a comparative figure either this quarter or in the corresponding quarter last fiscal, when it offered only standalone numbers.