SpiceJet's stock price drops 3.67% after the airline places 80 pilots on unpaid leave

21 Sept 2022 , 03:53 PM

SpiceJet's stock fell 4% during intraday trading on Wednesday after the low-cost carrier placed 80 pilots on three-month leaves of absence without pay in an effort to reduce expenses. In a strong volume trading of over 4.07 lakh shares on the BSE at 10:50 AM, the stock fell 3.5% to Rs42.10. The BSE benchmark, which was 59,732 at the time, was more or less unchanged.

Jet Airways  soared 4% to Rs 101 in the meantime, among other airline stocks. To Rs1,914, IndiGo increased by 0.3%. Following the July 27 directive of the Directorate General of Civil Aviation (DGCA) in the wake of disasters, SpiceJet has been recording losses for the previous four years and is currently operating fewer than 50% of flights (totaling 90+ aircraft).

SpiceJet asserted in a statement that it had received more than 30 aircraft in 2019 following the grounding of the B737 MAX aircraft. "The airline had continued with its scheduled pilot induction program in the expectation that the MAX would soon be back in service. But SpiceJet's pilot roster was significantly overstaffed as a result of the extended MAX fleet shutdown "It had been underlined.

A lengthy legal fight between the Ajay Singh-backed SpiceJet and the Swiss bank Credit Suisse was resolved earlier in August 2022 in an out-of-court deal. As a result, SpiceJet withdrew its appeal against a Madras High Court ruling that may have resulted in the low-cost airline's closure.

SpiceJet recorded a net loss of Rs78.83 crore for the quarter that ended in June 2022 as opposed to Rs72.91 crore in the same quarter a year prior. This was true even though overall revenue increased by 95%, from 126.59 to 247.84 crores in the same time last year.

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