Jet Airways (India) Ltd.’s managers assured investors Wednesday, May 28, that they have a plan to make the company profitable by the third quarter of 2016.
But that didn’t stop a fierce beat-down of Jet shares after the airline posted a record quarterly loss inflamed by its write-down of the value of investments in its discount-airline unit.
On Wednesday, shares of Jet, India’s second-largest airline by market share fell 8.5% to 245.35 rupees on a day when the benchmark index on the Bombay Stock Exchange remained flat.
Jet’s results – a loss of 21.54 billion rupees ($365 million) for the quarter ended March 31 — underscore the precarious financial condition of aviation companies in India where all except one—IndiGo—are loss-making.
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