SpiceJet share price falls nearly 4% after airline company sends 80 pilots on leave without pay –Here is what happened

Shares of SpiceJet fell nearly four per cent in BSE intraday trade on Wednesday after the airline company sent 80 pilots on leave without pay.  

SpiceJet share price fell 3.8% to Rs 41.90 per share in early trade on the BSE on Wednesday after the company decided to place nearly 80 pilots on leave without pay for a period of three months. The company apparently took this decision to rationalise cost. As on September 21, 2022, SpiceJet share price history shows that the stock has yielded a negative return of over 45% in the past one year.  

"This measure, which is in line with SpiceJet`s policy of not retrenching any employee which the airline steadfastly followed even during the peak of the Covid pandemic, will help rationalise the pilot strength vis-a-vis the aircraft fleet," said a Spicejet spokesperson, as per news agency PTI 
 
SpiceJet had earlier reported a net loss of Rs 789 crore (Rs 420 crore excluding forex adjustment) for the quarter ending June 30, 2022 as compared to a net loss of Rs 729 crore in the quarter ending June 30, 2021 as business was severely impacted by record high fuel prices and a depreciating rupee. 
 
Total revenue for the reported quarter was Rs 2,478 crore as against Rs 1,266 crore in the same quarter of the previous year. For the same comparative period, operating expenses were Rs 3,267 crore as against Rs 1,995 crore. On an EBITDA basis, loss was Rs 379 crore for the reported quarter as against a loss of Rs 244 crore for the quarter ended June FY2022. The airline continued to add new destinations to its network. 
 
Aviation regulator DGCA, in July-end, ordered SpiceJet to operate only 50 per cent of its flights for eight weeks.