NSE Symbol: JETAIRWAYS | BSE Code: 532617
Jet Airways Share Price Performance
The Jet Airways share price was at Rs.841.75 on 1st of January, 2018. The stocks gradually declined over the month and reached Rs.685.60 as February began. It dramatically shot up to Rs.803.25 in the middle of February but soon dropped below Rs.750 by the end of the month. March was an unfortunate month for the investors as the Jet Airways stock prices fell to hover just above Rs.600 mark by the time the quarter ended. April was more or less constant for the Jet Airways shares, which fluctuated between Rs.600 to Rs.650. The beginning of May witnessed a sharp drop in the scrip as it lost more than 100 points and was almost touching Rs.500. The Jet Airways shares went on a downward slope - it fell below Rs.400 in June and below Rs.300 in August. As the quarter ended in September 2018, the shares had dropped below the Rs.200 mark.
Jet Airways Company Information and Brief History
Jet Airways is an Indian international airline. It is based in Mumbai. In October 2017, Jet Airways was named as the second-largest airline in the country after IndiGo which has a 17.8% passenger market share. The main hub of this airline is located at Chhatrapati Shivaji International Airport at Mumbai. Additionally, it has secondary hubs at the Delhi and Bangalore Airports. It operates numerous flights to 67 destinations from its hubs. Jet Airways was started as a limited liability company which was incorporated in April 1992. It commenced operations in 1993 as an air taxi operator. Its full-fledged domestic operations began in 1995 and international flights were added in 2004. Jet Airways went public in 2005. It acquired Air Sahara in 2007. The company was considered the largest carrier by passenger market share in India by 2010; it retained this position until 2012. Jet Airways share price fluctuates at every moment and thus it is very important for all potential investors to keenly study the performance of the company’s shares before investing in it.
On the 1st April 1992, Jet Airways was incorporated as a limited liability company.
In May 1993, when the company started its operations as an air taxi operator, it had a fleet of four Boeing 737-300 aircrafts on a lease.
On 12th May 1994, all the Jet Airways shares were transferred to Tailwinds International, a company whose 60% equity capital was held by Naresh Goyal, 20% by Gulf Air and the remaining 20% by Kuwait Airways.
The airline received the status of a scheduled airline on 14 January 1995.
In October 1997, the Ministry of Civil Aviation issued a directive forbidding foreign investment in passenger airlines. This was when Naresh Goyal took control of the entire company.
Jet Airways launched its first international flight from Chennai to Colombo in March 2004.
In December of the same year, the company was listed on the Bombay Stock Exchange (BSE) and became a public company, with Naresh Goyal retaining 51% ownership of the company stock. Jet Airways share price at this time was Rs.1229.40.
In January 2006, the airlines announced its plan to acquire Air Sahara for an all-cash deal of US$500 million. However, the deal got scrapped June 2006 but was soon back on track in April 2007, when Jet Airways agreed to pay â‚¹14.5 billion.
In 2006, Jet Airways share price went through a sharp fall and reached a record-breaking low of Rs. 506.40 in July.
In April 2007, Air Sahara, after being renamed as JetLite, was marketed between a low-cost carrier and a full-service airline and became a fully owned subsidiary of Jet Airways.
Jet Airways announced its intentions to integrate JetLite into Jet Airways in August 2008. Subsequently, in October of the same year, 1900 employees were laid off. The layoff grabbed much attention and anger and the employees were soon reinstated when the Ministry of Civil Aviation intervened. During the same time, Jet Airways made an alliance with its rival - Kingfisher Airlines - for code-sharing on domestic and international flights, collaborating on the frequent-flyer program, and sharing crew plus ground handling equipment. The stock prices took a huge hit during the economic recession and dropped below Rs.130. This was the lowest in the Jet Airways share price history.
In May 2009, Jet Airways launched another low-cost brand called Jet Konnect, which operated a fleet of ATR 72 and Boeing 737 Next Generation aircraft; Jet Konnect operated on profitable short-haul routes and it had higher passenger load factors.
Jet Airways was the largest airline in India during the third quarter of 2010 with a passenger market share of 22.6%. Jet Airways share price gradually recovered and reached Rs.865 in November before starting to dwindle again.
In July 2012, Jet Airways officially applied for the government's approval to join Star Alliance; however, it wasn't permitted to join the alliance.
In June 2011, Jet Airways was the first domestic airline in the country to ban meat products and liquids in check-in baggage.
In March 2012, the JetLite brand merged into Jet Konnect and began offering business-class seats soon after the demise of Kingfisher Airlines.
In 2013, Etihad Airways had planned to purchase a stake in the airline after the government announced in September 2012 that foreign airlines may take a stake in Indian carriers of up to 49%. In April 2013, Jet Airways announced that it was willing to sell a 24% stake to Etihad for US$379 million. The deal signed on 12th November 2013. During this time, Jet Airways share price were around Rs.320.
In 2013, as jet Airways was facing a shortage of passenger demand, the airline reduced the prices and entered into a fare war with other low-cost carriers like IndiGo and SpiceJet.
In the same year, the market value of Jet Airways dropped by â‚¹4.84 billion owing to its falling share prices. The airline made profits in the third quarter of FY 2013–14, after posting losses over the previous year.
In August 2014 Jet Airways announced that it plans on phasing out Jet Konnect by the end of 2014 in order to re-position itself as a uniform full-service operator.
In December 2014, Jet Konnect completely merged with Jet Airways. Thus, Jet Airways became the third full-service airline in the country besides Air India and Vistara.
In December 2015, Jet Airways announced that its scissor hub at Brussels Airport would be closed by March 2016.
Jet Airways opened a new hub at Amsterdam Schiphol Airport in March 2016.
Jet Airways is the second largest airline in the country after IndiGo, with a 21.2% passenger market share.
Is Investing in Jet Airways a Good Idea?
Share market is a highly risky business and there is no correct answer to this question. One must study the market performance trend of the company's shares in order to determine if it would be a good investment. As of the current trends of Jet Airways share price, it doesn’t seem to be a very promising investment. While Jet Airways, in 2012, commanded a market share of 27%, today it’s dwindling at a mere 15% in 2018. Moreover, the company reported a loss of approximately Rs.768 Cr in FY 2017-2018, while it had a profit of 1483 Cr in FY 2016-2017. Furthermore, the steep rise in fuel prices is sure to affect the profitability of the airline industry. Hence, investing a large sum in Jet Airways shares isn’t a great idea.