Jet Airways in buzz

Jet Airways has raised a bridge rupee loan of about Rs 1,650 crore, in a move that practically negates its efforts to cut costly debt and interest costs. Its application to raise more overseas loans is awaiting approval from the Reserve Bank.

The finance cost of Jet Airways reduced by 15 per cent in FY15 compared to FY14 and it will reduced more due to this bridge rupee loan, this could save the interest cost and act as a temporary cousin to the company.

Jet Airways has raised the rupee bridge loan from Standard Chartered Bank, and Jet Airways is hopeful of RBI relaxing the caps soon, later it will raise the ECBs and repay the bridge loan. The total borrowings of Jet airways has Rs 10261 crore as on year ended March 2015.

Interestingly, Jet Airways has posted its biggest quarterly net profit as compared to last nine years, which was facilitated primarily by a fall in fuel costs and the biggest cost chunk for an Indian carrier. India's biggest airline by market share posted a profit of Rs 221.70 crore in Q1FY16, swinging from a net loss of Rs 217.65 crore in Q1FY15.

Additionally yesterday, Jet Airways gained ground in trade after the company reported a surge in its passenger traffic. Monthly domestic air passenger traffic data showed the airline's share jumped 63.4 per cent to 13.35 lakh in July 2015 over the same month last year.

Jet Airway's market capitalisation has gained 53 per cent to Rs 4,278 crore in the past one year. Today Jet Airways is trading around 4 per cent, up at Rs 393.