Jet shares surge 7% post good earnings, fund raising plan

Shares of Jet Airways surged nearly seven per cent today after the company slashed losses to the tune of 95.7 per cent at Rs 43 crore (Rs 430 million) in the three months to September.

Following this, the company's scrip jumped 6.86 per cent to Rs 268.70 on the BSE.

At the NSE, it surged 6.75 per cent to Rs 268.70.

A one-time income of Rs 305 crore (Rs 3.05 billion) from the sale of its loyalty programme to equity partner Etihad helped Jet Airways slash losses to the tune of 95.7 per cent at Rs 43 crore (Rs 430 million) in the three months to September.

The airline had reported a whopping Rs 999-crore (Rs 9.99-billion) net loss in the same period a year ago.

For the first time since 2012, the Naresh Goyal-promoted airline, however, on a standalone basis flew back into black with a net profit of Rs 69.82 crore (Rs 698.2 million), helped by the one-time income, the airline had said in a release on Friday.

In the same period a year-ago, the company reported a net loss of Rs 891 crore (Rs 8.91 billion).

The airline, however, said the better set of numbers is on account of operational restructuring, higher yield and expansion of code-share agreements with other carriers.

The airline also said its board has approved a proposal to raise up to $300 million in term-debt by issuing redeemable preference shares, non-convertible bonds or loan from its foreign shareholder Etihad, which had already extended a $150 million soft loan to the carrier when it sold 24 per cent stake to it.