The gains come after rival airline IndiGo, also the largest airline by market share, faces mass disruptions and cancellations leading to chaos at major airports across India. The disruption at IndiGo—India’s largest airline—has created an unexpected opportunity for SpiceJet, which has been stepping in to operate additional flights.
Last week, SpiceJet Chairman and Managing Director Ajay Singh said the airline would operate 100 extra flights over the next few days to assist stranded passengers. “What happened is extremely unfortunate, and it has caused huge inconvenience to passengers,” Singh said. “We are attempting to help by running 100 additional flights… We welcome the government’s decision to constitute a committee to investigate the issue.”
Despite Tuesday’s sharp rise, SpiceJet’s stock is down 40% on a year-to-date basis and remains close to its 52-week low of Rs 28.13.
IndiGo, which commands close to 66% of India’s domestic skies, has been reeling from large-scale operational turmoil triggered by the implementation of the new Flight Duty Time Limitations. The carrier struggled to adjust crew schedules under the revised norms, leading to a severe pilot shortage and widespread service breakdown. The crisis culminated in more than 1,000 flights being scrapped on Friday alone, almost half of IndiGo’s daily operations, leaving thousands of passengers stranded at airports across the country.
Shares of InterGlobe Aviation Ltd., the parent of IndiGo, extended their slide on Tuesday to record its eighth consecutive session of losses. The stock has now shed 17% over seven sessions, erasing over Rs 37,000 crore in market capitalisation, as investors reacted to the fallout from one of the worst episodes of air travel disruption in the country.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
