Indian low-cost carrier SpiceJet has slipped into its second straight quarterly loss, with geopolitical tensions and aircraft shortages dragging down both revenue and market position.
Heavy Losses Amid Revenue Slump
For the April–June period, the airline posted a loss of ₹2.35 billion, a stark reversal from the ₹1.5 billion profit it reported a year ago. Revenue tumbled 35% year-on-year to ₹11.06 billion, as the company struggled to keep planes in the air and routes active.
Pakistan Airspace Closure Hits Operations
One of the sharpest blows came from the closure of Pakistani airspace following an attack in Kashmir earlier this year. The move forced Indian carriers, including SpiceJet, to reroute or cancel flights, particularly affecting services out of northwestern India where some airports were also temporarily shut.
Fleet Groundings Add to Pressure
Even beyond geopolitical hurdles, SpiceJet’s own fleet problems weighed heavily. Delays in returning grounded aircraft to service left the carrier operating with just 25 planes out of its 61-jet fleet at the end of March. The company has been negotiating with lessors and creditors to stabilize operations, but the gap in capacity remains significant.
Rivals Step In as SpiceJet Falters
Competitors have been quick to take advantage. Newcomer Akasa Air has surged ahead, climbing to third place in market share with 5.5%. SpiceJet, by contrast, has slipped to around 2%, underscoring how vulnerable its position has become in a fast-growing aviation market.
Signs of Balance Sheet Repair
Despite the operational setbacks, there was one bright spot. The airline reported that its net worth returned to positive territory at ₹4.46 billion, compared with a negative ₹23.98 billion a year ago. Management has pledged to continue working with regulators and lessors to restore more aircraft to service and rebuild capacity.
Looking Ahead
Demand on certain routes remained weak during the quarter, but SpiceJet says it intends to publish a fuller recovery strategy in its upcoming financial commentary. The challenge now will be whether the airline can move quickly enough to regain lost ground before rivals tighten their grip on the market.
