SpiceJet hits 18-month low; stock down 23% thus far in 2022

The stock was quoting lower for the sixth straight day, down 6 per cent during this period.

Shares of SpiceJet continued to reel under pressure, hitting a 18-month low of Rs 52.30, down 1 per cent on the BSE in Thursday’s firm market. In comparison, at 11:10 am, the S&P BSE Sensex was up 1.4 per cent at 56,468 points.

The stock was quoting lower for the sixth straight trading day, down 6 per cent during this period. Thus far in calendar year 2022, it has underperformed the market by falling 23 per cent as compared to a 4.6 per cent decline in the benchmark index.

The BSE has sought clarification from Spicejet with reference to the media report appearing on May 02, 2022 titled "2 SpiceJet passengers in ICU after turbulence, crew off roster for probe''. The reply is awaited.

SpiceJet operates a fleet of Boeing 737s, Q-400s & freighters and is the country’s largest regional player operating 63 daily flights under UDAN or the Regional Connectivity Scheme. The majority of the airline’s fleet offers SpiceMax, the most spacious economy class seating in India.

The airline also operates a dedicated air cargo service under the brand name SpiceXpress offering safe, on-time, efficient and seamless cargo connectivity across India and on international routes.

Meanwhile, according to a Business Standard report, a Boeing 737 Max aircraft operated by SpiceJet returned to Chennai shortly after flying to Durgapur after its pilots shut down an engine due to a technical issue. DGCA sources said that the aircraft had been grounded and was being investigated, the newspaper reported. CLICK HERE FOR FULL REPORT

In the past one year, the stock price of Spicejet has declined 17 per cent, as against a 16 per cent rally in the S&P BSE Sensex, on weak operational performance.

For the nine months ended December 2021 (9MFY22), SpiceJet had reported a consolidated loss of Rs 1,259 crore due to rising operating expenses. It had a loss of Rs 773 crore in 9MFY21. Total revenue from operations grew 44 per cent year on year to Rs 4,733 crore from Rs 3,283 crore.