A Jet Airways plane readies for takeoff. Photo: iStock
Jet Airways operated its last flight on April 17 last year and became insolvent in June after being in service for 25 years. Photo: iStock

Shares of troubled Indian airline Jet Airways nosedived after the private carrier was forced to defer its first-quarter results because its financial earnings were not approved by auditors.

On the Bombay Stock Exchange at noon on Fridaay local time Jet Airways scrip was down 7.62% at 278.70 rupees, while at the National Stock Exchange it was trading at 278.80, down 7.59%.

The company said in a notice to the exchanges that the board “deferred the matter of consideration of the unaudited financial results for the quarter. It may be noted that the audit committee did not recommend the said financial results to the board for its approval, pending closure of certain matters,” Mint newspaper reports.

The development came after the company’s annual general meeting on Thursday. Jet Airways chairman Naresh Goyal has apologized to shareholders for the losses they suffered because of the sharp erosion in the airline’s share price.

Shares of India’s second-largest domestic airline have tanked 70% from its 52-week high levels of 844 rupees touched on January 5, 2018, in intra-day trade. In the financial year ended March 31, Jet Airways reported a loss of 6.36 billion rupees (US$92.4 million).

India’s aviation sector has been badly hit by rising fuel costs and a depreciating rupee. Recently, IndiGo posted a nearly 97% drop in its net profit, its worst ever quarterly performance. SpiceJet Ltd will report its earnings next week.

This month Jet Airways put forth a proposal to cut salaries by 5-25%, but it had to retreat after protests from employees.