Delay in announcing financial results sends Jet Airways shares tumbling
Jet Airways has deferred announcing its results for the quarter ending in June. Announcement has been deferred to unspecified date. This affected its stocks as the share price tumbled in Bombay Stock Exchange (BSE) on Friday.
Shares of the carrier fell 8.39 per cent to close at Rs 276.40 in BSE. In a filing to the BSE, the airline said that the board of directors decided not to review the unaudited financial performance for the June quarter.
"The audit committee did not recommend financial results to the board for its approval, pending closure of certain matters," the airline said in the filing without offering more details.
Jet Airways had earlier warned of stringer measures to tide over financial constraints in the face of rising fuel costs and stiff competitions.
All carriers in India are facing hard times due to rising fuel costs, depreciating rupee, high airport navigation fees and undercutting of tariffs amidst intense competition.
Last week, Jet Airways said it will be unable to fly beyond 60 days unless drastic cost-cutting measures including a 25 per cent pay cut are put in place.
It approached investment bankers again to help sell a stake in the carrier.
According to reports, the management of the airline informed employees in face-to-face meetings recently in Mumbai and Delhi that its finances are in bad shape drastic cost cutting measures are necessary.
It withdrew its decision to cut salaries as sections of its workforce resisted the move.
Airlines like IndiGo and Air India reported decrease in their profits and losses respectively. According to aviation advisory firm CAPA, Air India is expected to incur losses amounting to Rs 13,699 crore in fiscal years 2019 and 2020.
Meanwhile, Jet denied reports that its chairman of the audit committee S. Vishwanathan had quit, but said his term of office had come to an end at the AGM held on 9th August, which in fact he attended in person.
In an attempt to alleviate fear, Jet Airways said that this is not the first time corporate India has delayed its financial results.