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The stock has been under constant selling pressure and according to analysts tracking the aviation sector, "nothing seems to be working in favour of Jet Airways".

The company posted a Rs 44.98-crore loss for the quarter ended June 30, 2006, worse than Street expectations.

The stock ended on Thursday 1.79 per cent lower at Rs 517.40; it lost about 11 per cent on a month-on-month basis. Volumes were also higher on Thursday at 1.16 lakh shares against two-week average of 93,400 shares.

According to brokers, the company incurred loss on account of higher fuel charges and sold tickets on discount to face fierce competition in the aviation sector. According to them, these factors would continue to drag the company's profit margins, as oil marketing companies raised aviation fuel prices for domestic and international airlines from August 1.

Besides, the arrival of low-passenger fare airliner IndiGo into the crowded domestic market may also put pressure on the existing players.

K.S. Badri Narayanan

More Stories on : Stock Markets | Stocks | Ear to the ground | Jet Airways (India) Ltd | Airlines

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