SpiceJet fell 3.90% to Rs 41.90 after the budget airline reportedly placed 80 pilots on unpaid leave for three months in an effort to cut costs.
The media reported that in a temporary measure to rationalise costs, SpiceJet has decided to place certain pilots on leave without pay for a period of three months. This measure, which is in line with SpiceJet's policy of not retrenching any employee, will help rationalise the pilot strength vis-a-vis the aircraft fleet.According to reports, the grounding of the Boeing 737 MAX aircraft between March 2019 and November 2020 financially impacted the airline. SpiceJet had inducted more than 30 aircraft in 2019 following the grounding of the 737 MAX aircraft. It continued with its planned pilot induction programme expecting the grounded aircraft to be back in service. However, the prolonged grounding of the MAX fleet resulted in a large number of excess pilots at SpiceJet.
SpiceJet's fleet of 13 Max aircraft was grounded in March 2019. The Boeing 737 MAX passenger airliner was grounded worldwide between March 2019 and December 2020 after 346 people were killed in two airline crashes off the Indonesian coast and in Ethiopia in 2018-19.
SpiceJet is India's low-cost airline. It reported a net loss of Rs 789 crore (Rs 420 crore excluding forex adjustment) for the quarter ending 30 June 2022 as against a net loss of Rs 729 crore in the quarter ending 30 June 2021, as business was severely impacted by record high fuel prices and a depreciating Rupee.
Total revenue for the reported quarter was Rs 2,478 crore as against Rs 1,266 crore in the same quarter of the previous year. For the same comparative period, operating expenses were Rs 3,267 crore as against Rs 1,995 crore. On an EBITDA basis, loss was Rs 379 crore for the reported quarter as against a loss of Rs 244 crore for the quarter ended June FY2022.
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