Jet Airways opens 5% lower but turns positive on sliding crude prices

The company reported a Q2 net loss of Rs 1,291.97 crore, as against a profit of Rs 49.6 crore in the same quarter last year.

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Shares of Jet Airways opened about 5% lower at Rs 228 after after posting a net loss for the third quarter in a row, hurt by rising fuel costs and a depreciating rupee.

But the stock was quick to recover, rising 2 percent on sliding crude price and on the news that Tata group has begum due diligence to buy the debt-ridden airline.

The company reported a Q2 net loss of Rs 1,291.97 crore, as against a profit of Rs 49.6 crore in the same quarter last year.

But the company’s net loss narrowed from the previous quarter’s loss of Rs 1,323 crore.

Revenue grew 9.5 percent year on year (YoY) to Rs 6,161.15 crore.

The company said it will cut flights on some routes to boost profitability and boost revenue.

“The airline has embarked on a comprehensive review and consolidation of its network involving routes and markets, as well as products and services offered. The strategy includes concentration of capacity, enhancing frequency, density and hub connectivity,” the airline said in a statement.

SBICAP has maintained its Hold rating on the stock with a target price of Rs 291.

“Revenue supported by Rs 111 crore expected refund from a lessor,” SBICAP said in a research note.

At 09:25 hours, Jet Airways was quoting at Rs 246.00, up Rs 3.95, or 1.63 percent.

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