Indian budget airline SpiceJet (SPJT.BO) reported a loss of ₹2.35 billion ($26.6 million) in the April–June quarter, marking its second straight quarterly setback as regional tensions with Pakistan disrupted air travel.
The carrier had posted a profit of ₹1.5 billion during the same period last year. However, a sharp fall in leisure travel demand on certain routes and prolonged airspace restrictions following the worst India-Pakistan hostilities in decades weighed heavily on earnings.
After a deadly attack in Occupied Kashmir in April, which New Delhi blamed on Islamabad, Pakistan shut its airspace to Indian carriers while India temporarily closed several airports in its northwest. Pakistan has denied involvement in the incident.
SpiceJet’s quarterly revenue plunged 35% year-on-year to ₹11.06 billion. The airline also cited delays in returning grounded planes to service as another key factor hurting performance.
Despite signing multiple settlement agreements with lessors, the airline continues to face challenges in expanding capacity. By March 2025, only 25 of its 61 aircraft were operational, allowing younger rival Akasa Air to surpass it as India’s third-largest airline with a 5.5% market share, compared to SpiceJet’s 2%.
Still, SpiceJet pointed to signs of financial recovery, noting its net worth had turned positive at ₹4.46 billion, compared with a negative ₹23.98 billion a year earlier.