SpiceJet plunges 10%, hits 52-week low after DGCA halves capacity

Shares of SpiceJet plunged 10 per cent after aviation regulator DGCA directed that the company would operate only 50 per cent of approved flights for eight weeks. This development came after numerous flight safety incidents and a show-cause notice.

In response SpiceJet said, it has already been running half its approved capacity, in effect meaning the regulator’s restrictive mandate would have no impact on its operations.

DGCA said any increase in the number of flights will be subject to “the airline demonstrating to the satisfaction of DGCA that it has sufficient technical support and financial resources to safely and efficiently undertake such enhanced capacity.”


During the eight weeks, the airline shall be subject to “enhanced surveillance” by the regulator, the regulator added.

A SpiceJet spokesperson said, “We want to reassure our passengers and travel partners that our flights will operate as per schedule in the coming days and weeks, there will be no flight cancellation as a consequence of this order.”

SpiceJet is now operating 300 of its 600 flights and that will not change.

Following the update, the scrip hit its 52-week low of Rs 34.60 on BSE. At 10:05 am, it hovered around Rs 35.65, 7.05 per cent below its previous close of Rs 38.30.

The stock has given a negative 3-year return of 73.94 per cent as compared to a 56.64 per cent rise seen in the Nifty Smallcap 100.

SpiceJet is a budget airline with a market cap of Rs 2,142.40 crore.