Indian airline, SpiceJet has suffered a big loss of $26.6 million in the months from April to June.
It is pertinent to mention that Indian airplanes are still banned in Pakistani airspace and this is the reason behind this loss.
Last year, this airline made a profit of 1.5 billion rupees.
In a statement, SpiceJet said the results were significantly impacted by the geopolitical situation with a neighbouring country and airspace restrictions in key markets, which led to subdued leisure travel demand.
“The delay in returning grounded aircraft to service, owing to global supply chain disruptions and engine overhaul challenges, further compounded the situation,” it added.
In July, SpiceJet had a domestic market share of 2 per cent, as per official data.
The carrier has signed multiple settlement agreements in recent years to resolve disputes with lessors and others but has still struggled to expand capacity.
Relations between India and Pakistan, already at a historic low, plummeted further in April after the Pahalgam attack, in which gunmen killed 26 civilians in Indian Occupied Kashmir. India blamed Pakistan for the attack and walked out of the Indus Waters Treaty (IWT).
Pakistan rejected the accusation of being involved in the Pahalgam attack. In early May, a war broke out between Pakistan and India, which lasted for a few days before India backed out after seeing Pakistan’s capabilities.
