SpiceJet finds many things to blame for financial setback

Amidst the turbulent phase that the cash stripped airline Spicejet is going through, the airline in a detailed presentation recently laid out a detailed account of what actually went wrong and their future prospects.

- Saurabh Sharma

The airline in an investor presentation highlighted the global grounding of Boeing 737 Max aircraft, the impact of the Covid-19 pandemic, and soaring fuel prices as some of the major reasons behind the financial setbacks the airline is facing. During the COVID-19 pandemic, the global aviation industry was impacted heavily due to the grounding of their fleet which led to a crisis in the aviation industry. Post the pandemic era, the aviation industry started to fly again and Spicejet in the initial phase post the pandemic showed a few signs of recovery but eventually, the crisis kept on brewing and finally exploded in the last couple of months. The airline also pointed to a sharp rise in fuel prices, with Brent crude oil peaking at $120 per barrel and aviation turbine fuel prices hitting a record high in June 2022. One of the major reasons for the crisis is the grounding of its fleet.