Jet scrip tanks over 10% on highest annual losses

Shares of Jet Airways on Wednesday tanked over 10 per cent in the morning trade as the airline has posted its highest-ever annual loss of Rs 4,129 crore (Rs 41.29 billion).

The scrip of the Naresh Goyal-led carrier opened the day on a weak note and plunged 9.37 per cent to Rs 243 on the BSE.

At the NSE, the stock declined by 10.10 per cent to Rs 241.50. Later, the scrip was trading at Rs 250.80, down 6.47 per cent at 1248 hrs on the BSE.

Struggling with high expenses and adverse operating conditions, Jet Airways had yesterday posted its highest-ever annual loss of Rs 4,129 crore - forcing it to adopt tough measures to lower costs and achieve profitability with a three-year business plan.

The decisions - which included appointment of a new CEO, cleaning up of balance sheet, pruning of overvalued assets, cost restructuring and changes in service and fleet plans -- were taken yesterday at a board meeting attended for the first time by representatives of Abu Dhabi-based Etihad Airways, which has acquired a 24 per cent strategic stake in the Indian carrier.

To be headed by Australian national Cramer Ball (formerly with Etihad) as its new CEO, Jet posted net loss of Rs 2,153.57 crore for the quarter ended March 31, while its consolidated loss for the full fiscal widened to Rs 4,129 crore (Rs 41.29 billion).

It had reported a net loss of Rs 495.53 in Q4, 2012-13. It is the fifth straight quarterly loss for the airline.

For 2013-14 fiscal, Jet reported operating loss of Rs 2,076.2 crore (Rs 20.76 billion) and a non-cash extraordinary write down of Rs 936 crore, aircraft-on-ground of Rs 417.6 crore (Rs 4.17 billion), and impairment of goodwill of Rs 700 crore (Rs 7 billion).