Key points
- SpiceJet revenue drops 35pc year-on-year
- Fleet shrinks to 25 active planes
- Akasa surpasses SpiceJet in market
ISLAMABAD: SpiceJet, an Indian airline, has slipped deeper into crisis, posting a quarterly loss of 2.35 billion rupees ($26.6 million) as the fallout from this May’s four-day military conflict between India and Pakistan continues to choke its air travel operations.
The confrontation—India’s Operation Sindoor and Pakistan’s counter strike Operation Banyan ul Marsoos—saw airspace shut to Indian carriers after hostilities flared. That closure remains in place, forcing airlines to cut or reroute flights and hammering travel on key routes.
According to a report by Reuters, for SpiceJet, the impact has been brutal. Quarterly revenue plunged 35 per cent to 11.06 billion rupees in the April-June period, compared with a profit of 1.5 billion rupees a year earlier. With only 25 of its 61 aircraft in service, the carrier has struggled to restore capacity and scale back up.
Overtaking SpiceJet
The squeeze has allowed younger rival Akasa to overtake SpiceJet, securing 5.5 per cent of India’s fast-growing aviation market against SpiceJet’s 2 per cent.
Despite the red ink, SpiceJet reported its net worth had improved to 4.46 billion rupees in the first quarter, reversing a negative 23.98 billion rupees from a year earlier.
But with grounded jets still awaiting clearance and Pakistani airspace closed, the airline remains on shaky ground.
