Abu Dhabi-based Etihad Airways has a 24% equity stake in the Indian carrier that deferred announcing earnings results by two weeks earlier this month
Etihad backed Jet Airways will consider a turnaround plan tomorrow when its board meets to approve financial results for the quarter ended June.
The board will “take up the matters in relation to the cost reduction initiatives and turnaround plan, for which the management had earlier sought time,” Jet Airways said in a filing on Wednesday.
Part-owned by Etihad Airways, the Indian carrier deferred its earnings originally scheduled for 9 August by more than two weeks, saying management and auditors needed more time to finalise accounts.
Jet Airways, once at the forefront of India’s rapidly growing market for air travel, has been reeling under pressure from the challenge by budget carriers and surging fuel prices. It reported losses in all of the last 11 financial years but two, and needs to repay about $447 million in debt coming due through 31 March.
The Mumbai-based company had total debt of 94.3 billion rupees ($1.4 billion), and cash and equivalents of 3.2 billion rupees for the year ended March 31, 2018, according to Bloomberg-compiled data.
The firm’s total debt ballooned to 55.4 times earnings before interest and tax as of March 31, compared with 4.9 times the previous year, the data showed.