Budget airline stock SpiceJet share price fell over 5 percent in intra-day deals on Monday, September 8 after the company posted weak results for the quarter ended June (Q1FY26).

SpiceJet slipped into the red during the first quarter of FY26, posting a consolidated net loss of ₹234 crore compared to a net profit of ₹158.18 crore in the same quarter last year. The airline’s financial performance was revealed in its Q1 filings released on Friday.

The company reported that revenue from its core operations dropped nearly 36 percent year-on-year to ₹1,059.88 crore in Q1FY26, down from ₹1,646.21 crore in the corresponding quarter of the previous fiscal.

SpiceJet attributed this steep decline to multiple headwinds, including geopolitical tensions with a neighbouring country and airspace restrictions in key international markets, which weighed on leisure travel demand and further impacted its topline. The airline also faced delays in bringing grounded aircraft back into service due to global supply chain disruptions and engine overhaul challenges.

Ajay Singh, chairman and managing director of SpiceJet, said, “This quarter’s results reflect the extraordinary challenges faced by the aviation industry, including geopolitical turbulence, restricted air routes, and supply chain disruptions. Despite these headwinds, SpiceJet continues to demonstrate resilience. We are taking decisive steps to enhance fleet reliability, reduce costs, and expand our network. With India’s aviation and tourism sectors among the fastest-growing globally, we remain confident of a strong recovery trajectory in the coming quarters.”

The airline also reported an EBITDA loss of ₹18 crore in Q1FY26, compared to an EBITDA of ₹402 crore a year ago. Some operational metrics remained relatively stable, with Passenger Revenue per Available Seat Kilometer (PAX RASK) standing at ₹4.74 and Passenger Load Factor (PLF) holding steady at 86 percent.

Meanwhile, total expenses for the quarter fell 25 percent to ₹1,435.04 crore compared to ₹1,919.58 crore in the same period last year. On a standalone basis, SpiceJet posted a net loss of ₹235.08 crore for Q1FY26.

Should you still buy?

Following the Q1 results, domestic brokerage firm Nuvama lowered its target price for SpiceJet to ₹40 from ₹48 earlier, while maintaining a ‘Hold’ rating on the stock. The brokerage noted that the airline’s Q1 performance came in below expectations, largely due to lower Available Seat Kilometers (ASKMs) and Passenger Load Factor (PLF), along with higher Cost per Available Seat Kilometer (CASK).

Nuvama highlighted that the pace of operational fleet increase has been slow and delayed, although the Q2 outlook appears steady. The brokerage expects the airline’s recovery to be gradual and continues to view a full turnaround as a key factor to monitor. Consequently, it has cut its FY26E and FY27E EBITDAR estimates by 14 percent each to reflect the delayed recovery trajectory.

SpiceJet Stock Performance

The stock lost as much as 5.4 percent in intra-day deals to its day’s low of ₹32.60.

The airline stock has lost over53 percent of its investor wealth in the last 1 year while it shed 34 percent and 20 percent in the last 6 months and 3 months, respectively.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.