SpiceJet employees at Delhi Airport staged a strike against the company on Friday morning, demanding answers from the domestic carrier’s management over reduced salaries, news agency PTI reported. The protesting staff, however, later during the day, returned to work after holding talks with senior management of the airline. SpiceJet has trimmed the salaries of its employees since March 2020, owing to a stressed financial situation amid the pandemic. SpiceJet share price fell 1.6% during the day, trading at a low of Rs 70.45 on Friday.
“A section of employees working at the Delhi airport and having some issues have met senior officials and the matter is being resolved,” a spokesperson for SpiceJet said. The airline clarified that its flight operations have been functioning normally at Delhi Airport, despite the strike. SpiceJet spokesperson claims that the issue with a section of employees at the Delhi airport has now been resolved and that the employees have returned to work.
SpiceJet remains under pressure as the aviation industry struggles to cope up with reduced business amid the pandemic. “With earnings under pressure, we remain concerned about its fragile liquidity position,” analysts at Centrum Broking said earlier in a report on SpiceJet. The brokerage firm has a Reduce rating on the stock. During the first quarter of this financial year, SpiceJet reported a net loss of Rs 730 crore. During the last quarter of the previous financial year the company had reported a net loss of Rs 235 crore. The company reported a loss despite a 111% jump in revenue, a factor affected by the low base effect.
The aviation industry continues to remain under pressure. In the week ending August 28, average daily passenger traffic for the aviation industry stood at a little over 2 lakh, according to ICICI Securities. The number of fliers per departure declined to 105 against 113 in the prior week. To add to SpiceJet’s woes, ATF prices continue to remain high and are up 59% on-year basis and have gained 35% so far this year.