You are here: Home » Markets » News
Business Standard

SpiceJet tanks 4% as airline sends 80 pilots on Leave Without Pay

The low-cost airline has been reporting losses for the past four years and is operating less than 50 per cent flights, following the July 27 DGCA order in the wake of mishaps.

SpiceJet | Buzzing stocks | Market trends

SI Reporter  |  Mumbai 


Shares of plunged 4 per cent in intraday trades on Tuesday, the low-cost airline sent 80 pilots on leave without pay for three months in its bid to rationalise costs.

At 10:50 AM, the stock traded 3.5 per cent lower at Rs 42.10, amid heavy volume of around 4.07 lakh shares on the BSE. Meanwhile, the BSE benchmark was mor or less unmoved at 59,732.

Meanwhile, among other airline stocks, Jet Airways had zoomed 4 per cent to Rs 101. added 0.3 per cent to Rs 1,914.

has been reporting losses for the past four years and is operating less than 50 per cent flights (total 90-odd aircrafts), following the July 27 order of the Directorate General of Civil Aviation (DGCA) in the wake of mishaps.

In a statement, said it had in 2019 inducted more than 30 aircraft following the grounding of the B737 MAX aircraft. “The airline had continued with its planned pilot induction programme with the hope that the MAX would be back in service soon. However, the prolonged grounding of the MAX fleet resulted in a large number of excess pilots at SpiceJet,” it noted. READ MORE

Earlier in August 2022, Ajay Singh-promoted SpiceJet and Swiss bank Credit Suisse settled a long winding dispute through an out of court settlement. This led to the withdrawal of an appeal by SpiceJet against a Madras High Court order that would have potentially led to the winding up of the low-cost airline.

For the quarter ended June 2022, SpiceJet had reported a net loss of Rs 78.83 crore as against a loss of Rs 72.91 crore in the corresponding quarter a year ago. This was despite, a 95 per cent surge in total income to Rs 247.84 crore from Rs 126.59 crore in the same comparable period.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, September 21 2022. 10:54 IST