Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Market / Stock-market-news/  Jet Airways shares gain 14.4%; highest level since May 2013
BackBack

Jet Airways shares gain 14.4%; highest level since May 2013

Drop in crude oil prices is expected to boost the company's profit

Brent crude has fallen 58.2% to $ 48.11 a barrel from $115.06 per barrel in the last seven months. Photo: Abhijit Bhatlekar/MintPremium
Brent crude has fallen 58.2% to $ 48.11 a barrel from $115.06 per barrel in the last seven months. Photo: Abhijit Bhatlekar/Mint

Mumbai: Shares of Jet Airways (India) Ltd, the country’s second-largest airline by passengers carried, rose as much as 15.8% to a record as a drop in crude oil prices is expected to boost profit.

On Tuesday, Jet Airways gained 14.4% to close at 497.65, while shares of SpiceJet Ltd gained 1.57% to close at 22.60. The BSE’s benchmark Sensex gained 1% to 29,571.04 points.

Brent crude has fallen 58.2% to $ 48.11 a barrel from $115.06 per barrel in the last seven months. ​

In India, fuel costs count for about 45-55% of the revenue of domestic airlines and a 4% reduction in the fuel cost may add around 2% to the operating margin of airlines.

The Mumbai-based Jet Airways will report its earnings on 6 February and, according to a Bloomberg consensus of three analysts, the airline is expected to post a net profit of 213.3 crore on a revenue of 5,396.4 crore for the quarter ended 31 December.

For the month of January, the average shares traded daily was just 700,000 shares compared to Tuesday’s 1.48 million shares.

Asked about speculation that Jet Airways may come up with a rights issue, a spokeswomen for the airline denied any such move.

On 21 January, Jet Airways had said its founder chairman Naresh Goyal will not dilute his equity below 51% at any time issuing a clarification to Press Trust of India story saying that Goyal has pledged his entire 51% shareholding, valued at more than 2,600 crore, to state-run Punjab National Bank (PNB). According to the report, the airline, in a regulatory filing, had said Goyal has pledged all his 57.93 million shares, constituting 51% holding in the airline, effective 8 January to PNB with a “non-disposal undertaking".

The spokesperson had said the transaction with PNB is just an undertaking of non-disposal of any further equity and not a matter of pledging of his shares.

UAE-based Etihad Airways PJSC holds a 24% stake in Jet Airways as a strategic partner, while remaining shares are owned by institutional and retail investors. Jet Airways currently operates a fleet of 116 aircraft connecting 71 destinations in India and abroad.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 27 Jan 2015, 04:14 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App