Investors cheer fresh fund infusion in a situation where it has been battling cash crunch issues.
Shares of Jet Airways rose 3 percent on Wednesday morning as investors cheered the ‘liquidity support’ of USD 300 million that the firm received.
The stock touched an intraday high of Rs 302.70 and an intraday low of Rs 296.00.
The airline announced that it got USD 300 million in the form of advance lease incentives and borrowings from domestic banks, news agency PTI reported.
The company got a liquidity support of USD 300 million towards lease incentives and bank borrowings, Jet Airways deputy chief executive and chief financial officer Amit Agarwal today said in an analysts call.
Agarwal, however, did not give the breakup, but said, "A large proportion of it came from lease incentives."
The two back-to-back losses forced the airline to draw up a revival plan, which includes capital infusion, a cost reduction programme of more than Rs 2,000 crore over two years, a plan to improve pricing, better inventory management, monetising its JetPrivilege programme and wet leasing some of its small aircraft.
The airline reported net loss at Rs 1,323 crore in Q1FY19 against profit of Rs 53.5 crore in the same quarter last fiscal.
Revenue was up 6.4% at Rs 6,010.5 crore against Rs 5648.9 crore. Q1 EBITDA loss was at Rs 1,018.4 crore versus EBITDA of Rs 88.1 crore.
The company to focus on looking at raising funds, also to focus on cost cutting measures, raise revenues through monetisation.
At 09:31 hrs Jet Airways was quoting at Rs 298.20, up Rs 3.40, or 1.15 percent, on the BSE.
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