ZCZC
BCN-30
INDIA-ECONOMY-AVIATION-JETAIRWAYS
India’s Jet Airways nosedives after earnings delay
MUMBAI, Aug 10, 2018 (BSS/AFP) – Shares in India’s Jet Airways tumbled
more than eight percent on Friday after the embattled airline failed to
release its latest quarterly earnings as scheduled.
Local media have raised concerns about India’s second-largest carrier,
reporting it may cease flying in two months unless it makes major cost cuts.
Jet Airways slid 8.04 percent in morning trade, a day after it told the
Bombay Stock Exchange that it was delaying releasing its first-quarter
results until an unspecified date, “pending closure of certain matters,” it
said in a filing.
Intense competition, rising jet fuel prices, and a weak rupee have been
credited for eroding the profitability of Indian airlines, including Jet
Airways, India’s number-two carrier by market share.
Last week the Economic Times reported that Jet needs to make major cost
cuts or face having to shut down operations within 60 days.
The Mint financial daily reported that the airline was in talks with
investors to raise cash. Jet Airways denied that it needed to take drastic
measures.
Indian passenger numbers have increased six-fold over the past decade as
customers take advantage of better connectivity and cheaper fares thanks to a
host of low-cost airlines.
BSS/AFP/HR/1300