SpiceJet Shares Trade Under Pressure as Flight Delays Worsen for May

Mumbai, July 16: SpiceJet share price has fallen 3% over five days after official data released a week ago highlighted the airline’s deteriorating operational performance, with nearly one in every seven flights delayed by more than two hours in May. The stock traded amid persistent concerns over the carrier’s financial health, shrinking fleet and declining market share. 

The stock has lost more than 4.1% over the past five trading sessions, nearly 15.7% in the last month, around 63% so far this year and approximately 72% over the past 12 months, reflecting investor concerns over the airline’s prolonged turnaround. As of writing the stock was down 1.28% at Rs 10.82. 

Delay rate climbs to five-month high 

According to data released by the Directorate General of Civil Aviation (DGCA), 15.75% of SpiceJet’s flights were delayed by more than two hours in May—the highest among India’s major airlines and the carrier’s weakest operational performance in five months.

The figure translates to roughly one out of every seven SpiceJet flights being delayed by over two hours. 

The airline’s delay rate was significantly higher than its peers. Market leader IndiGo reported a delay rate of just 0.78% during the month, while Air India’s stood at 1.85% and Akasa Air’s at 1.49%. 

 The DGCA began publishing data on flights delayed by more than two hours earlier this year, providing a clearer picture of airlines’ operational reliability. 

Operational challenges deepen

The latest figures underscore the operational pressures confronting SpiceJet as it continues to grapple with a limited fleet, financial constraints and heightened scrutiny from regulators, lessors and passengers. 

The airline’s market share has steadily declined from 3.9% in January to just 3% in May, indicating that travellers are increasingly opting for rival carriers amid concerns over schedule reliability. 

Industry experts said the deterioration in on-time performance is likely to weigh further on passenger confidence at a time when competition in the domestic aviation market remains intense. 

Delay trend worsens through 2026 

DGCA data showed that SpiceJet’s operational performance has steadily deteriorated this year. 

In January, 7.2% of its flights were delayed by more than two hours. That figure more than doubled to 15.75% by May. 

In comparison, IndiGo improved from a delay rate of 2.9% in January to 0.78% in May, while Air India and Akasa Air also maintained significantly lower delay levels.

The widening gap highlights the growing operational divergence between SpiceJet and its competitors. 

Analysts see survival mode 

Brokerages said the airline appears to be focused on preserving operations amid prolonged financial stress rather than pursuing expansion. 

Analysts said rising delays have hurt SpiceJet’s operational reliability and brand perception, prompting some passengers to shift to competing airlines. 

They also noted that SpiceJet has been unable to fully capitalise on the stronger airfares that have supported profitability for rival carriers. 

The brokerages pointed out that SpiceJet’s active fleet has shrunk significantly and is now smaller than that of Akasa Air—a sharp reversal from management’s earlier expectations of steady fleet expansion. 

What passengers are entitled to 

India’s passenger charter lays down compensation and assistance requirements for passengers affected by significant flight delays. 

Under the DGCA’s Civil Aviation Requirements (CAR), passengers who have checked in on time must be provided complimentary meals and refreshments if delays exceed specified thresholds. For flights with a block time of up to two hours, assistance must be provided after a delay of more than two hours. The threshold rises to three hours for flights of up to five hours and four hours for longer flights. 

If a domestic flight is delayed by more than six hours, passengers are entitled to choose between an alternative flight and a full refund. Overnight delays also require airlines to arrange hotel accommodation, unless the disruption is caused by extraordinary circumstances beyond the airline’s control. 

With operational challenges persisting and investor confidence remaining weak, SpiceJet faces the difficult task of restoring schedule reliability, rebuilding its fleet and regaining passenger trust in an increasingly competitive aviation market. 

Source

• https://www.nseindia.com/get-quote/equity/SPICEJET/SPICEJET-LTD, official data