Jet Airways on Monday reported a net loss of Rs 1,323 crore for the quarter ended June, hurt by rising fuel prices and a depreciation of the rupee.

The airline's board also considered various cost-cutting steps, debt reduction and funding options, including infusion of capital, monetisation of assets, including the company's stake in its "Loyalty programme" to shore up its financial position.

To discuss the numbers and the outlook in detail, CNBC-TV18 spoke with Ansuman Deb, research analyst at ICICI Securities.

According to Deb, "Cost cutting measures of Rs 2,000 crore was already part of their plan but incrementally they have said they will be monetising Jet privilege loyalty program and also change seating structures of their 737 fleet".

"All these are good measures but not enough to recovery the losses. However, the amount of losses the company is making on lower yields and high cost pressures coupled with the fact that it has high forex liability – those cost savings may not be sufficient," Deb told CNBC-TV18 on Tuesday.

"Importantly, the company requires capital funding now and the company said they would infuse some liquidity but we are awaiting clarity on that," said Deb.

“We had add rating based on valuations on the kind of recovery we are factoring in FY20 but having said that FY19 is going to be a washout year in terms of earnings,” he said, adding that a lot of corporate action will dictate the stocks. “As of now we have an add rating hope for more clarity on funding issues,” he said.

First Published:Aug 28, 2018 9:55 AM IST