Jet Airways share slumps after debt payment failure

Shares in India's second-largest airline Jet Airways fell five percent Wednesday after the company admitted it had failed to meet debt payments to banks.

The airline hit turbulence last year after failing to report its quarterly earnings or pay its staffers including pilots in August.

Subsequently, chief executive Vinay Dube released the earnings and announced a cost cutting programme amounting to 20 billion rupees ($280 million) over the next two years.

"Payment of interest and principal installment due to the consortium of Indian Banks on 31st December 2018 has been delayed due to temporary cashflow mismatch," the struggling airline said in a statement.

Jet added that it was in talks with the consortium led by State Bank of India (SBI). After reporting a loss of $178 million for July-September, the carrier announced last November that it would cut flights on less profitable routes as part of a plan to reduce costs.