SpiceJet shares slump after DGCA curtails flights by 50%
Shares of SpiceJet settled over 3% lower on Thursday after the company was asked by aviation regulator DGCA to curtail its services by half for eight weeks.
In morning trade, the stock had tanked nearly 10%.
The stock trimmed most of its early losses and settled at ₹36.95, down 3.52% on the BSE. During the day, it tanked 9.66% to its 52-week low of ₹34.60.
The 30-share BSE benchmark jumped 1,041.47 points or 1.87% to settle at 56,857.79.
About 10.42 lakh shares of the company were traded on the BSE.
Aviation regulator DGCA on Wednesday ordered SpiceJet to operate a maximum of 50% of its flights for eight weeks after several of its planes reported technical malfunction recently.
During these eight weeks, the budget carrier will be subjected to “enhanced surveillance” by the Directorate General of Civil Aviation (DGCA).
On Thursday, SpiceJet said it is confident of scaling up its operations and addressing concerns of the DGCA.
On Wednesday, the airline had said there will be no flight cancellations because of the regulator’s order as it is already operating limited services “due to the current lean travel season”.
“In view of the findings of various spot checks, inspections and the reply to the show cause notice submitted by SpiceJet, for the continued sustenance of safe and reliable transport service, the number of departures of SpiceJet is hereby restricted to 50% of the number of departures approved under summer schedule 2022 for a period of eight weeks,” the aviation regulator’s order on Wednesday said.