SpiceJet share price slumped as low as nearly 7 percent on August 30 a day after the aviation watchdog Directorate General of Civil Aviation (DGCA) decided to place crisis-hit airline under enhanced surveillance.
The BSE-listed stock opened with a loss of 5.78 percent in Friday's trading session and touched an intraday low of Rs 62.01, declining 6.37 percent.
The sharp fall was witnessed in the shares of no-frills carrier after reports of cancellation of flights and financial stress being experienced by SpiceJet.
DGCA said it conducted a special audit of the airline's engineering facilities on August 7 and 8 and certain deficiencies were found during the audit.
The enhanced surveillance will entail increased spot checks and night surveillance to ensure safety of the airline's operations.
In 2023, the regulator had placed SpiceJet under enhanced surveillance. "In light of the past record and the special audit carried out in August 2024, SpiceJet has once again been placed under enhanced surveillance with immediate effect," DGCA said in a release.
SpiceJet's scheduled flights on Thursday from Dubai faced cancellations due to non-payment of certain dues to the Dubai airport.
The company had a 20 percent fall in its consolidated net profit for the first quarter that concluded in June 2024, at Rs 158 crore. The same was Rs 198 crore during the same period of previous financial year.
Meanwhile, the analysts at the domestic brokerage JM Financial believe capacity expansion and lower ATF will drive earnings trajectory in the sector.
"ATF which forms major chunk of operating cost continues to experience price cut in 2Q25 on the back of falling oil prices, following a surge in 2Q24 and 3Q24. Due to this, airlines might experience lower costs and higher margins," it said in its Aug 29 report.
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