Jet Airways – Too early to board, wait for more details on restructuring

More
Highlights:
– Yield improvement offset by decline in passenger growth, reported flat revenue
– Fuel prices continue to mount pressure on operating profitability leading to huge contraction in margin
– Funding gap of Rs 8,500 crore needs to be addressed
– Apart from getting funds for continuing operations, business strategy needs to be looked at to impart efficiency
– Stay away until more clarity on structure and business come

————————————————–

Jet Airways continues to face turbulence and posted a bad set of numbers for Q3 FY19, further denting its liquidity situation. Financial performance in the quarter gone by was marred by a cocktail of higher fuel cost, rupee depreciation, lower capacity and loss of market share. Though the company has proposed a resolution plan to keep itself afloat and improve its financial performance, there’s still not enough clarity. In this note, we analyse the latest quarterly performance of Jet and what does this resolution plan has in it for the company and its lenders.