Spicejet slips 8% as India grounds Boeing 737 MAX

NEW DELHI: Shares of Spicejet slipped 8 per cent and a hit a intra-day low of Rs 72.50 on Wednesday morning on fears that grounding of Boeing 737 MAX aircraft will hurt the airline’s revenue and profitability.

The shares of the airlines had closed at Rs 78.80, down 5.29 per cent yesterday. The scrip hovered at Rs 74.85, down 5.01 per cent at around 09:37 am.

India has grounded Boeing 737 MAX being operated by airlines in the country after about 15 countries banned the aircraft following two deadly accidents within a span of five months.

“DGCA has taken the decision to ground the Boeing 737-MAX planes immediately. These planes will be grounded till appropriate modifications and safety measures are undertaken to ensure their safe operations. As always, passenger safety remains our top priority. We continue to consult closely with regulators around the world, airlines, and aircraft manufacturers to ensure passenger safety,” the aviation ministry said.

Meanwhile, the shares of Spicejet opened at Rs 74 on BSE against its previous closing of Rs 78.80.

The shares of the company pared some losses and closed 2.09 per cent down at Rs 77.15 on BSE.