SpiceJet shares fell over 3% on Wednesday, raising concerns about the airline's financial health. The carrier is planning job cuts as part of its turnaround strategy.
Photograph: Utpal Sarkar / ANI Photo.
New Delhi, Feb 14 (PTI) Shares of crisis-hit SpiceJet fell over 3 per cent on Wednesday amid concerns over the airline's financial position.
The scrip dropped 3.44 per cent to close at Rs 63.37 on the BSE on a day when the overall market ended on a positive note.
On Wednesday, benchmark BSE Sensex reversed its losses and closed in the positive territory at 71,822.83 points, a gain of 267.64 points.
In a statement, SpiceJet said it is currently at its strongest financial position in recent history and mentioned various fund raising initiatives.
"We want to clarify that regular payments are being made to lessors and any reports suggesting outstanding amounts are baseless and denied.
"The airline has extended many aircraft leases and has also signed up for fresh lease agreements starting summer schedule 2024. SpiceJet is actively engaged in discussions for long-term lease contracts with lessors, signalling our commitment to expand our fleet and network," the airline said on Wednesday.
The carrier is also planning to cut at least 1,000 jobs.
"As part of our turnaround and cost-cutting strategy, we've implemented several measures, including manpower rationalisation, aimed at achieving profitable growth and capitalising on opportunities in the Indian aviation industry. We anticipate significant annual savings, up to Rs 100 crore, through this initiative alone," the statement said.
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