SpiceJet recovers after slipping 5% as planes remain grounded

SpiceJet slipped over 5% on the Bombay Stock Exchange (BSE) to Rs 13.15 levels in intra-day trade after the airline failed to operate any flight on Wednesday after being refused ATF (aviation turbine fuel) by public sector oil companies. The stock, however, recovered partially around noon to Rs 13.5 levels.

According to a Business Standard report, there were no departures nationwide as the airline has reportedly not paid its main supplier Bharat Petroleum Corp. Ltd (BPCL), which has already put SpiceJet on a cash-and-carry basis for the past few months.

Reports suggest that the airline sources fuel close to Rs 3.5 crore daily from BPCL. Mumbai airport saw only two SpiceJet arrivals this morning, from Goa and Dubai. In Chennai, the airline cancelled its flight to the Andaman Islands, leading to angry protests by passengers.

The stock opened at Rs 14.5 on the BSE and touched an intra-day low of 12.75 before recovering some lost ground. Over 129,75,800 shares have been traded till 1200hrs far on the BSE.