SpiceJet stock slips 6% after DGCA puts co under 'enhanced surveillance'

SpiceJet shares drop: Domestic carrier SpiceJet shares fell sharply on Friday, August 30, 2024. The stock fell as much as 6.37 per cent to hit an intraday low of Rs 62.01 per share on BSE. 

SpiceJet's share price dropped following the decision by the aviation watchdog Directorate General of Civil Aviation (DGCA) to place the airline under ‘enhanced surveillance.’ This measure, announced on Thursday, includes more frequent spot checks and night surveillance to ensure the safety of SpiceJet’s operations. READ MORE

The move comes after an audit of the airline’s engineering facilities on August 7 and 8 revealed certain deficiencies.

"In light of the past record and the special audit carried out in August 2024, SpiceJet has once again been placed under enhanced surveillance with immediate effect. This would entail an increase in the number of spot checks/ night surveillance with a view to ensure the safety of operations," DGCA said in a release.

Financial performance
 

Indian low-cost airline SpiceJet, headquartered in Gurugram, reported a 20 per cent year-on-year (Y-o-Y) decline in consolidated net profit, falling to Rs 158.1 crore in the June quarter of financial year 2025 (Q1FY25).

The decrease was attributed to a reduction in flight operations due to financial challenges.

SpiceJet’s total income decreased 8.3 per cent Y-o-Y to Rs 2,077.7 crore in Q1FY25.

SpiceJet Ltd engages in air transport services for both passengers and cargo. As a low-cost carrier based mainly in India, SpiceJet is known for operating the highest number of UDAN flights in the country. 

The airline runs approximately 250 daily flights to 48 destinations within India and several international locations. Its fleet comprises Boeing 737 Max, Boeing 700, and Q400 aircraft.

The market capitalisation of SpiceJet is Rs 4,955.77 crore, according to Bombay Stock Exchange (BSE). The company falls under the BSE SmallCap category.

At 9:48 AM, shares of SpiceJet were trading 5.48 per cent lower at Rs 62.60 per share. In comparison, BSE Sensex was trading 0.35 per cent higher at 82,418.70 levels.