Jet Airways shares slump after company defers first-quarter results

File photo. Photograph:( Zee News Network )

WION Web Team Mumbai, Maharashtra, India Aug 10, 2018, 10.51 AM (IST)

Shares of India`s leading full-service carrier Jet Airways Ltd fell as much as 14.5 per cent in early trade on Friday after the company deferred its first-quarter results, news agency PTI reported.

Jet Airways, late on Thursday, said the audit committee did not recommend the results to the company`s board for approval "pending closure of certain matters", the report added.

The airline, which is partly owned by Etihad Airways, has been facing financial troubles, although it said earlier this month it remains confident of being able to cut costs and keep flying despite reports it had warned staff it was running out of cash.

Shares in the company, valued at about $500 million, were trading 6.5 per cent lower at 0407 GMT while the broader Mumbai market was down 0.12 per cent. 

Local media reports recently said that Jet Airways (India) Ltd will be unable to fly beyond 60 days unless cost-cutting measures including pay cuts are put in place. 

The management team, including Chairman Naresh Goyal, has informed employees in face-to-face meetings in recent days in Mumbai and Delhi that the airline's financials are in a bad shape and drastic measures needed to be taken to cut costs, a media reported, citing two company executives.