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Jet Airways loses most on BSE after airline's announcement on cost cutting

Jet Airways loses most on BSE after airline's announcement on cost cutting

At 2:09 pm, the Jet Airways stock was trading 5.21 percent lower at 683 level on the BSE.  The index has been the top loser in today's trade since market opened today.

The Jet Airways stock lost ground in Tuesday's trade after the airline said it would focus on reducing expenses, especially in trimming maintenance and distribution costs, as the full-service airline pursues strategic growth priorities amid stiff competition.

At 2:09 pm, the Jet Airways stock was trading 5.21 percent lower at 683 level on the BSE.  The index has been the top loser in today's trade since market opened today.

The stock is up 90.21 percent since the beginning of this year. On an yearly basis, the stock rose 83.43 percent.

It closed 7.96 percent or 57.35 points lower at 663 level on the BSE. To bolster its overall income, the carrier would also focus on enhancing ancillary revenue by around Rs 250 crore. The airline would look to reduce maintenance expense from January 2019 as well as bring down the cost of sales and distribution, the firm said in  presentation.

Going forward, Jet Airways said it would also be deploying "15 per cent fuel efficient B737-Max (aircraft) inductions commencing from June 2018".

More than 25 such planes are expected to be delivered to the airline by March 2020.

The carrier said it would increase the number of seats in Boeing 777 planes from 346 seats to around 400 seats from 2019 onwards.