Jet Airways stock slumps by 13.3% to 3-year low at Rs 261.60

After the auditors did not approve the financial earnings for the June quarter of Jet Airways India Ltd's, the airline's share price slumped over 13%, which is a three-year low. The share price of the airline touched Rs 261.60 per share, i.e. a fall of 13.3%. 

However, the share prices of SpiceJet Ltd and Inter Globe Aviation (IndiGo) rose 2.2% and 1.7%. India’s benchmark Sensex Index fell 0.17% to 37,960.14 points.

Jet Airways said to the stock exchanges "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," as quoted by Livemint.

According to the report, with the ever rising fuel cost and depreciating currency, analysts are worried about the outlook of the aviation sector. Domestic carrier, Indigo also posted a drop of nearly 97% in its net profit, recently, which is the worst ever quarterly performance. Another airline, Spicejet will report its quarterly earnings next week.

Earlier in the day, Naresh Goyal, founder chairman, Jet Airways, said he felt “guilty and embarrassed” as a lot of shareholders have lost their money.

The stock of the carrier has slumped over 12% since July 2 and in intra-day trading on Thursday, it touched a 52-week low of Rs 286.95 a piece.

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Goyal said key external factors that slowed down the airline's momentum were weakening of the Indian rupee, around 16 per cent increase in brent rates with a consequent rise in fuel costs and the industry's inability to pass on increased costs to the consumers.

In addition, there was a considerable increase in maintenance, landing and navigation costs during the year, he said.

According to him, operationally the airline took every step possible to maintain a sharp focus on costs and worked to reduce net debt.