Jet plunges 5% as airline defaults on salary
NEW DELHI: Shares of Jet Airways dropped over 5 per cent on Thursday as the airline defaulted on salary payments again.
The cash-strapped airline on Wednesday sought over 10 more days from its employees to pay the balance 25 per cent of their salaries for August.
The stock fell 5.54 per cent to hit a low of Rs 181.25 on the BSE today. Jet Airways had paid 50 per cent of August salaries to its employees on September 11 and the rest was to be paid on Wednesday. But it could pay only half of the balance amount.
“Jet Airways today remitted half of the second instalment of pending emoluments of its pilots, AMEs and senior management for August 2018,” the airline said in a statement on Wednesday. “The airline has also communicated a revised date of payment to the employees concerned and stands committed to honour its obligations,” it said.
Meanwhile, sentiment at the counter also got hurt by the latest government decision to impose 5 per cent Customs duty on ATF, a major component of an airline's operational costs, which is seen to add to the woes.