Jet Airways shares dive 7% amid concerns over financial health

New Delhi: Shares of Jet Airways faced heavy selling pressure today, tumbling 7 per cent amid concerns over its financial health.

The stock dived 7 per cent to settle at Rs 308 on BSE. During the day, it slumped 9 per cent to Rs 301.25.

On NSE, it plunged 6.90 per cent to close at Rs 308.30.

The company's market valuation fell by Rs 263.2 crore to Rs 3,498.80 crore on BSE.

In volume terms, 21.85 lakh shares of the company were traded on BSE and over 2 crore shares changed hands on NSE during the day.

Jet Airways pilots and management are on a war path over salary reductions and possible job cuts at various departments, with the airline telling them that it might not be able to continue operations for more than two months, sources in the pilot community said.

However, Jet Airways today described reports that the airline cannot fly beyond 60 days as "incorrect and malicious". It also denied any talks of a stake sale.

Earlier this week, the top management in a meeting with staff, including pilots, informed them that the airline is in a financially bad shape and sought their cooperation in reducing costs. The proposed steps include pay cuts, sources in the pilot community told PTI.

In a BSE filing, the airline said it is implementing several measures to reduce cost as well as realise higher revenues, for desired business efficiencies.

Jet Airways' filing came in response to a clarification sought by BSE on reports that the airline might not to able to fly beyond 60 days amid financial woes.

Jet Airways -- which completed 25 years of operations earlier this year -- had 16,558 permanent employees as on March 31, 2018.

Besides, there were a total of 6,306 temporary/ casual employees, as per the airline's annual report for 2017-18.