Despite posting a quarterly loss, India’s Jet Airways on Tuesday gained 2% on the Bombay Stock Exchange (BSE), after recouping from a nearly 3% loss in early trade. At 11am on Tuesday it was trading at 285.75 rupees, as against the previous close of 281.80 rupees.
The company’s move to seek a capital infusion and sell its stake in its loyalty program seems to have retained investor interest.
India’s second-largest airline had posted a net loss of 13.26 billion rupees (US$189 million) in the April-June quarter (Q1) of the 2018-19 financial year. This was the airline’s third-highest quarterly loss.
The airline blamed increases in costs and low fares for the loss. Similar poor showings were visible across the Indian aviation sector. Rival IndiGo’s profit fell 97% in the quarter, while SpiceJet incurred a loss of 380 million rupees.
On August 9, Jet deferred its quarterly results amid differences with its auditors, leading to inquiries by stock exchanges and the market regulator. The auditors did not modify their opinion and reiterated that the airline’s future was dependent on raising capital and generating sustainable cash flows.