Jet Airways shares on Thursday plunged by around 12% to Rs 370 per share to an over 15-month low after the company posted heavy losses amounting to Rs 1,036 crore for the March quarter.
The Jet Airways shares closed at Rs 421.10 per share on Wednesday.
The private carrier posted heavy losses as the aviation industry is grappling with higher fuel prices.
Jet Airways shares were down 6.9 percent as at 1.10 pm, after falling as much as 12.1 percent to Rs 370.05 earlier in the session.
The stock may fall up to Rs 332.6 rupees, which is the 100 percent Fibonacci retracement of the uptrend from December 27, 2017 low to January 5, 2018 high, reported Thomson Reuters.Aircraft fuel expenses surged 31 percent for the quarter while foreign exchange losses amounted to Rs 132 crore, the country's second-largest airline by market share said in a statement on Wednesday.
Jet Airways flagged that it has incurred a loss during the year and has a negative net worth that "may create uncertainties." It added that it is working to reduce costs, improve operational efficiency and raise funds to address any uncertainties.: Jet Airways Posts Rs.
1,036 Crore Q4 Loss Due To Higher Fuel CostsThe auditors, referring to the company's note on the uncertainties it may face, said that the assumption of operating as a going concern depends on Jet Airways realising various initiatives it has undertaken to raise funds or generate cash flows to meet its future obligations."Our opinion is not modified in respect of this matter," they said."Jet has been hurt more as they have more exposure in high competition routes and they face IndiGo in most of these places," said Gagan Dixit, analyst with Elara Capital.IndiGo, owned by InterGlobe Aviation, had reported a 73 percent slump in the fourth-quarter profit.
IndiGo shares were trading 0.47 percent higher while those of Spicejet Ltd were down 3.45 percent on Thursday.: 11 Days, 11 Hikes: Petrol, Diesel Costlier By Over 2.5 Rupees Per Litre"Slightly lower yields, plus maintenance expense and exchange losses affected them in this quarter.
The loss is a negative surprise I'd expected a marginal profit of Rs 250 million," Dixit said.Oil prices continue to remain a concern, he added.
Thomson Reuters 2018