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. 

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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.”

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.