SpiceJet's share plummeted more than 5 per cent in Monday's intra-day trade following the budget carrier's weak results for the first quarter of FY26.
For the quarter ended June, the airline fell into the red, logging a consolidated net loss of ₹234 crore. Standalone-wise, the loss at ₹235.08 crore was a far cry from the net profit of ₹158.18 crore logged during the same quarter of the previous year.
Operational income also suffered a steep decline, falling by almost 36 per cent year-on-year to ₹1,059.88 crore from ₹1,646.21 crore in Q1 FY25.
The airline blamed the fall on a range of headwinds such as geopolitical tensions with a neighbouring country, curtailed international flight routes, and a decline in demand for leisure travel. It also struggled to restart grounded planes, with global supply chain clogs and engine maintenance timelags exerting the pressure.
The airline's performance, said Ajay Singh, Chairman and Managing Director of SpiceJet, reflects the "extraordinary challenges" facing the aviation industry. He cited turbulence caused by geopolitical doubts, clipped air routes, and supply chain hiccups.
In spite of the disappointment, Singh emphasized that the company is robust in its core operations with emphasis on improving fleet reliability, lowering operating expenses, and widening its route network. He expressed hope that India's strong growth in aviation and tourism would contribute to a turnabout in the next few quarters.
The carrier also posted an EBITDA loss of ₹18 crore for Q1 FY26, compared to profit of ₹402 crore in the corresponding period last year.
Operational statistics remained stable in certain segments, with Passenger Revenue per Available Seat Kilometer (PAX RASK) of ₹4.74 and Passenger Load Factor (PLF) of 86 per cent.
Concurrently, quarter-wise expenses relaxed by 25 per cent from ₹1,919.58 crore last year to ₹1,435.04 crore.
After the earnings announcement, local brokerage Nuvama cut its target price for the stock to ₹40 (from ₹48 previously) with a 'Hold' rating. The brokerage said Q1 performance was below expectations due to lower capacity, muted load factors, and higher costs.
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