SpiceJet turns volatile after resumption of flight schedules

SpiceJet fell 1.90% to Rs 12.90 at 11:31 IST on BSE after the company said it will be operating its normal daily schedule today, 18 December 2014.

Meanwhile, the BSE Sensex was up 230.01 points, or 0.86%, to 26,940.14.

On BSE, so far 53.04 lakh shares were traded in the counter, compared with an average volume of 76.78 lakh shares in the past one quarter.

Trading in the counter was volatile. The stock rose 5.70% at the day's high of Rs 13.90 so far during the day. The stock fell 1.90% at the day's low of Rs 12.90 so far during the day.

The stock hit a 52-week high of Rs 22.20 on 26 May 2014. The stock hit a 52-week low of Rs 11.10 on 13 August 2014.

The stock had outperformed the market over the past one month till 17 December 2014, falling 4.85% compared with 5.21% fall in the Sensex. The scrip had, however, underperformed the market in past one quarter, falling 4.15% as against Sensex's 0.30% rise.

The small-cap company has an equity capital of Rs 599.45 crore. Face value per share is Rs 10.

According to reports, SpiceJet's flights were grounded Wednesday, 17 December 2014, morning after oil marketing companies (OMCs) refused to provide SpiceJet with credit to buy jet fuel over the issue of non-payment of dues. The OMCs had placed the budget airline in the cash-and-carry mode under which the company has to make spot payments for buying fuel.

SpiceJet reportedly resumed operations following an understanding with OMCs.

The company stated on its website that its bookings are now open until 28 March 2015.

The no-frills carrier is facing tough business conditions and the situation has only worsened in recent days with cancellation of flights.

On Tuesday, 16 December 2014, the government reportedly provided a breather to the airline by asking the Airport Authority of India (AAI) and OMCs to give a fortnight more to the airline to pay back its dues, besides pushing the aviation regulator to relax the curbs on advance bookings beyond a month, until March 2015.

SpiceJet reported a net loss of Rs 310.45 crore in Q2 September 2014, lower than net loss of Rs 559.49 crore in Q2 September 2013. Net sales rose 15.2% to Rs 1435.86 crore in Q2 September 2014 over Q2 September 2013.

SpiceJet is India's second largest airline by domestic passenger share.

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