Jet Airways share price hits all-time low, plunges 10%; employees suffer as salaries delayed
Jet Airways touched an all-time low of Rs 173.15 per piece taking the stock down by nearly 10% in today’s trading session.
In percentage terms, the second largest private carrier Jet Airways has now hit a big air pocket, and reports are painting a big doomsday scenario. Nothing is going well in the airline, which is why, investors have lost their faith in the company. Today, was no different, the airline touched an all-time low of Rs 173.15 per piece taking the stock down by nearly 10% in today’s trading session. At around 12:19 hours, the company was trading at Rs 180.15 per piece down by Rs 11.75 or 6.12% on BSE. Reason behind this decline is being blamed on delay in payment of salaries to its management.
However, Economic Times quoted the airline today as saying, “Jet Airways today remitted half of the second instalment of pending emoluments of its pilots, AMEs and senior management for August 2018.”
Reportedly, the airline has also communicated a revised date of payment to the employees concerned and stands committed to honour its obligations.
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ICICI Securities in its research report earlier said, “ The current stress in the Indian aviation sector is cyclical and will reverse. Yet, Jet is poised with significant challenges which pose insolvency risk. The possible sources of funding include help from structured financing of Jet’s big aircraft orders, sale of the Jet Privilege program, sub lease of aircraft, sale of owned aircraft and capital infusion.”
Analysts at ICICI stated that, pending required clarity on availability of funding in relation with the change in crude/currency, we put Jet rating as UNDER REVIEW.