SpiceJet shares are down 5% today: Here we decode why
What's the story
SpiceJet's shares fell over 5% in intra-day trading today after the airline reported a consolidated net loss of ₹234 crore for the first quarter of FY26. This is a sharp contrast to the net profit of ₹158 crore it had posted in the same period last year. The company's financial performance was disclosed in its Q1 filings released on Friday.
Revenue decline
Core revenue takes a hit
SpiceJet's core revenue witnessed a steep decline of nearly 36% year-on-year, falling to ₹1,059.88 crore in Q1 FY26 from ₹1,646.21 crore in the same period last fiscal. The airline attributed this sharp drop to several headwinds such as geopolitical tensions with a neighboring country, and airspace restrictions on key international routes. These factors impacted leisure travel demand and further affected its topline performance.
Operational hurdles
Operational challenges and management's response
SpiceJet also faced delays in returning grounded aircraft to service due to global supply chain disruptions and engine overhaul challenges. Despite these operational hurdles, Ajay Singh, Chairman and Managing Director of SpiceJet, expressed confidence in a strong recovery trajectory for the airline. He said, "We are taking decisive steps to enhance fleet reliability, reduce costs, and expand our network."
Market response
Key operational metrics and stock performance
In Q1 FY26, SpiceJet reported an EBITDA loss of ₹18 crore as opposed to an EBITDA of ₹402 crore a year ago. However, some operational metrics remained stable with Passenger Revenue per Available Seat Kilometer (PAX RASK) at ₹4.74 and Passenger Load Factor (PLF) at 86%. Notably, the airline's stock hit a low of ₹32.60 today and has lost over half its value in just one year.