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SpiceJet shares plunge 10% amidst restructuring; CCO quits

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SpiceJet

stock price today: Shares of SpiceJet, the troubled airline, witnessed a decline of up to 10% to reach the day’s lowest point at Rs 54.60 on the Bombay Stock Exchange (BSE) on Tuesday. This drop in share prices comes after a strategic restructuring within the company, resulting in the departure of several members of the commercial team, including the Chief Commercial Officer.
In a statement, a spokesperson for SpiceJet mentioned that as part of SpiceJet’s strategic restructuring, several members of the commercial team, including the Chief Commercial Officer, have left the company with immediate effect.

At 12:17 PM, SpiceJet shares were trading at Rs 56.31, down Rs 4.47 or 7.05%.
Earlier, the cash-strapped airline had announced plans to lay off approximately 1,400 employees as a measure to reduce costs and maintain investor interest, stated an ET report.

Despite these challenges, SpiceJet remains optimistic about its growth prospects. The company has reported significant revenue growth and a positive load factor. The recent fundraise has expedited the resolution of past disputes, allowing SpiceJet to focus on expanding its capacity and playing a prominent role in the Indian aviation sector.
As part of its revival plan, SpiceJet has successfully completed the first round of capital infusion, raising Rs 744 crore. The company is awaiting regulatory approval for additional subscriptions and is also in the process of raising an additional Rs 1,000 crore. SpiceJet already has shareholder approval to raise up to Rs 2,500 crore through QIP.

In the September quarter, the budget carrier reported a consolidated net loss of Rs 449 crore, compared to Rs 830 crore in the same period last year. However, the company had recorded a profit of Rs 198 crore in the preceding June quarter. Consolidated revenue from operations witnessed a year-on-year decline of 27% to reach Rs 1,429 crore.
Recently, SpiceJet announced the resolution of a dispute worth Rs 413 crore with Echelon Ireland Madison One Ltd. As part of this agreement, SpiceJet will acquire two airframes, thereby strengthening its fleet and operational capabilities.

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