Last Update: May 23, 2023, 3:49 PM IST
SpiceJet shares fell 20 per cent on Tuesday to hit a 52-week low. The stock hit a day’s low of Rs 22.65 before recovering some losses. The stock is currently trading at Rs 24 on the NSE, down 14.5 per cent.
SpiceJet is grappling with loss of market share, grounding of aircraft and liquidity issues. And despite the difficult times, SpiceJet is celebrating its 18 glorious years of flying high in the Indian skies. The stock has been on a downslide since its competitor GoFirst filed for bankruptcy. Investors and lessors fear that SpiceJet will follow the same path after defaulting on rental payments.
On a year-to-date basis, shares declined 40 percent despite a rebound in travel demand for the overall industry. On the other hand, rival IndiGo has gained around 12 per cent during the period.
SpiceJet’s troubles have increased in the last few months amid financial crisis and several grounded aircraft. The airline has defaulted on lease rental payments and has been in talks with lessors for two years to restructure them.
The company had previously clarified that it had no intention of filing for bankruptcy to satisfy business partners, even as lessors have been pushing for the airline to clear its dues.
The company said on Tuesday that it aims to have 4 of the 25 planes back in service by June 15 and that more will return to operations in the coming weeks. The airline is targeting the return of two Boeing 737s and two Q400s.
SpiceJet plans to launch several flights including two international flights on the Agartala-Chattagram-Agartala and Imphal-Mandalay-Imphal sectors by the end of June. The airline also plans to launch a new flight on the Kolkata-Tezpur-Kolkata sector and resume Kolkata-Gwalior-Kolkata and Jammu-Gwalior-Jammu flight operations. In addition, SpiceJet will commence flights on the Kolkata-Agartala-Kolkata and Kolkata-Imphal-Kolkata sectors and resume flights on the Kolkata-Chattagram-Kolkata sectors,” the company said.
Among listed as well as unlisted aviation players, IndiGo is the market leader with 55.7 per cent share, while SpiceJet has 6.9 per cent in the March quarter.
