Shares of Spicejet fell over 4% on Thursday, September 22nd, after DGCA extended the restrictions imposed on the airline till 29th October.
During Thursday's trade, the share price opened on a negative note at ₹40 and touched a low of ₹39.55 on the NSE. It then closed nearly 3.58% lower at ₹40.35 and it recorded a volume of 5.9 million.
Spice Jet shares have been declining since the start of the year. The stock has dropped 53.78% from its 52-week high of ₹87.3 set on November 14, 2021, and with Thursday's closing price of ₹40.35, the stock is just 15% away from its 52-week low of ₹34.8.
Additionally, the stock has dipped almost 31.13 percent since past six months.
In an effort to exercise "abundant care," the Directorate General of Civil Aviation (DGCA) on Wednesday increased the 50 percent restriction on SpiceJet flights by little over a month.
“The review has indicated that there is an appreciable reduction in the number of safety incidents. However, as a matter of abundant caution, the competent authority has decided that the restrictions as imposed in the order dated July 27.07.20222 that continue to be in force till the end of the summer schedule (which ends October 29, 2022)," the DGCA said in its order.
Due to a number of incidents involving its flights, the DGCA has ordered SpiceJet to run no more than 50 percent of its flights that were allowed in the summer schedule for a period of eight weeks as of July 27, 2022.
On September 20, in an effort to save expenses, the struggling airline firm announced that it has placed 80 of its pilots on a three-month leave without pay. The firm, which is located in Gurugram, has decided to streamline costs and pilot strength to match the size of its fleet.
Company's annual revenue growth of 24.69 percent outperformed its 3 year CAGR of -5.92 percent.
Consolidated Total Income for the quarter ending June 30th, 2022, was ₹2,474.32 crore, up 91.07 percent from the same quarter last year and up 16.40 percent over the previous quarter's total income of ₹2,125.69 crore. In the most recent quarter, the company generated net profit after tax of ₹-783.62 crore.
Spicejet Ltd., founded in 1984, is a mid-cap business with a market valuation of ₹2,527.55 billion working in the airline industry. Income (Airlines), Cargo Income, and Other Operating Revenue are some of Spicejet Ltd.'s primary product/revenue segments.