Jet Airways has been a topic of talk in the past few months due to its debt. The airline is going through its worst times but on Thursday the value of its stock rose 122 percent ahead of the decision on whether the bankruptcy case will go against the airline or not.
“Market is expecting a positive outcome at the NCLT hearing. As a result, short covering and fall in open interest mainly supported the stock on Thursday,” said Chandan Taparia, derivative and technical analyst at Motilal Oswal Securities.
For those who dont, know why Jet Airways has stopped its operations, let us help you by telling that rising debts led to the failure. In last 14 years, Jet has posted losses in 9. In 2017-18, it reported a net loss of Rs 636.50 crore against a net profit of Rs 1,498 crore reported for the previous year. The Operating profit decreased around 95 percent in FY18 even when net sales increased 8 percent to Rs 24,510.70 crore
Also Read:5 Reasons That Led Jet Airways To Shut Its Operations
As a result, the stock rose 122.21 percent to close at Rs 73.55 on NSE. A report by PTI has revealed that Jet Airlines owes over Rs 10,000 crore to its vendors and Rs 3,000 crore to around 23,000 staff who have not been paid since March. The overall dues are over Rs 36,500 crore with negligible assets to recover the money.
