Jet Airways shares drop on market share concerns

Shares of Jet Airways plunged 5 per cent in Tuesday's trade after the company on Monday announced plans to cut down expenditure, especially in trimming maintenance and distribution costs. 

According to reports, the stock fell 5 per cent to Rs 684.50 on BSE. It opened at Rs 709 and touched an intraday high and low of Rs 709 and Rs 666.55 respectively, in trade till around 10.15 am (IST).

Jet Airways may lose market share in passenger traffic growth, says Mayur Milak, analyst with IndiaNivesh Securities, adding “While they acknowledged India passenger traffic growth at 15-17%, they would be conservative and increase own capacity by 8-10% in the next two three years, clearly meaning market share loss.”

TRENDING NOW

Auto giant Aston Martin launches DB12 in India; know ex-showroom price and specifications

Amazon Great Indian Festival: Get Apple iPhone 14 for as low as Rs 23,249

Government increases windfall tax on domestic crude to Rs 12,100/t from Rs 10,000/t

Guaranteed Pension System (GPS) vs Old Pension Scheme (OPS): Which pension scheme offers maximum retirement benefits?

Godrej Properties acquires 109-acre land in Nagpur for about Rs 200 crore to expand business

Mutual Fund Investment: 5 best mutual funds to build wealth

Amazon Great Indian Festival dates announced; Prime members to get early access from October 8

Anil Agarwal shakes up biz; to demerge five businesses of Vedanta, restructure zinc unit

India's forex reserves falls for 3rd week in a row

ICC World Cup 2023: When and where to watch India vs England warm-up match tomorrow

IND Vs ENG LIVE Score, ICC World CUP 2023 Warm Up Match Updates: India to take on England in their first warm-up match at Barsapara Stadium, Guwahati

Small savings schemes: Five-year recurring deposit will make more money for you in December quarter; this is the new interest rate

RBI cancels licence of Lucknow Urban Co-operative Bank

Plaza Wires IPO hits Street: Issue price, subscription status, listing date, other key details to know

EPFO extends deadline to upload details by employers for higher pension option by 3-month till Dec 31

Recent rally may not last on market share concerns, and both crude price and rupee depreciation may impact profits.
 
The scrip had touched its fresh 52-week high of Rs 727 on November 20, 2017 and its 52-week low of Rs 332.40 on December 27, 2016. 

The aviation firm reportedly plans to to cut costs (excluding fuel) by up to 15 per cent, increase ancilliary revenue by Rs 250 crore and increase capacity at a CAGR of 10 per cent over three years. 

In a presentation made to investors on Monday, the carrier has listed out its priorities for strategic growth. It would look to reduce maintenance expense from January 2019 as well as bring down the cost of sales and distribution, as per the presentation.