Jet Airways shares tank 5 per cent as company delays part payment of August salaries

Shares of Jet Airways tumbled nearly 5 per cent on Thursday as the company delayed part payment of August salaries to pilots and senior management personnel.

Also, the decision to impose 5 per cent customs duty on ATF also hit sentiment.

On Wednesday, the government raised import duties on ATF and 18 other items with an aim to check the widening current account deficit.

The stock tanked 4.82 per cent to close at Rs 182.65 on BSE. Intra-day, it dived 9.77 per cent to Rs 173.15 -- its 52-week low.

At NSE, shares of the company slumped 4.60 per cent to end at Rs 183.20.

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In terms of equity volume, 10.56 lakh shares of the company were traded on BSE and over one crore shares changed hands at NSE during the day.

Crisis-hit Jet Airways has told its pilots, aircraft maintenance engineers and senior management team that part of their August salaries will be paid by October 9, according to a communication.

On September 6, the full service airline told senior employees that salaries would be paid in two installments till November.

The salaries for August were to be paid in two instalments -- 50 per cent by September 11 and the remaining by September 26.

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The airline, which has posted losses for two straight quarters, is grappling with financial woes.

Experts say that the latest decision to impose 5 per cent customs duty on ATF, which is a major component of an airline’s operational costs, would add to the woes.