Shares of budget carrier SpiceJet came under intense selling pressure on February 25, hitting the 10 percent lower circuit after a large block deal saw a significant chunk of equity change hands. Nearly 15 crore shares representing about 8.4 percent of the company’s outstanding equity were traded in bunched transactions, amplifying volatility in an already weak counter.

The selloff marks the seventh consecutive session of decline for the airline stock, taking the cumulative drop to roughly 25 percent over the past week. At around 11:00 am, the stock was locked at ₹12.88 on the BSE, with heavy volumes indicating strong exit activity and limited buying support at lower levels.

Block deals of this magnitude often signal either a large institutional exit, promoter-linked stake movement, or ownership restructuring. However, the absence of publicly disclosed counterparties at the time of the trade has added uncertainty, prompting investors to adopt a risk-off stance.

This sharp market reaction comes at a time when the airline has been attempting an operational turnaround. Last week, SpiceJet announced plans to scale up its fleet to around 60 aircraft through a combination of wet leases, damp leases, and the reactivation of grounded planes. The company has also reported a notable recovery in domestic market share, rising to 4.3 percent in December from just 1.9 percent in September, supported by a 56 percent expansion in capacity during the December quarter.

Looking ahead, the airline has outlined an ambitious plan to more than double its capacity to 220 crore Available Seat Kilometres by Winter 2026. Such expansion would require sustained access to aircraft, funding, and operational stability factors that investors continue to scrutinize given the carrier’s past financial stress.

Complicating the outlook further, reports indicate that Bangladesh has barred the airline from using its airspace due to pending dues. The restriction forces longer flight paths on certain routes, particularly from Kolkata to destinations such as Guwahati, potentially increasing fuel consumption and operating costs. While the company has stated that it remains in regular dialogue with authorities on operational matters, the development underscores lingering balance sheet and regulatory challenges.