SpiceJet trades lower for fifth straight day, hits eight-month low

Shares of SpiceJet were trading lower for the fifth straight session, down 2.5 per cent at Rs 96.85 on the BSE on Friday in an otherwise firm market. The stock of India’s second biggest airline in terms of market share was quoting at its lowest level since April 11, 2019.

In the past six days, SpiceJet’s share price has slipped 7 per cent after Boeing announced last week that it would suspend producing 737 Max planes as the certification process of the safety of these planes by the Federal Aviation Administration would move into 2020. In comparison, the S&P BSE Sensex was up 1.8 per cent during the same period.

“Boeing’s decision to halt 737 MAX productions could impact India’s aviation sector in many ways. In the end of 2016, SpiceJet had firmed up orders for 205 new planes from Boeing with 155 of them being 737 MAXs.