D-Street investors turned cautious on SpiceJet as the stock hit a two-year low on Thursday, a day after the Directorate General of Civil Aviation on Wednesday ordered the domestic airline to operate a maximum of 50 percent of its flights for eight weeks.

The aviation regulator’s order came after several recent incidents of SpiceJet planes reporting technical malfunction. During these eight weeks, the budget carrier will be subjected to "enhanced surveillance" by the DGCA.

Following the ruling, SpiceJet shares shed more than 9 percent in intraday trade. The stock was trading 5.3 percent lower at Rs 36.25 on BSE at 11:13 am. In the past year, the stock has erased more than half (52.33 percent) of investors’ wealth as against the benchmark Sensex which rose over 7 percent during the period.

Thursday’s fall in the budget carrier’s stock comes even as it claimed that there would be no flight cancellations because of the regulator's order as it is already operating limited services "due to the current lean travel season".

Spicejet has reassured its passengers and travel partners that its flights would operate as per the schedule in the coming days and weeks

SpiceJet's planes have witnessed at least eight technical malfunction incidents between June 19 and July 5. The DGCA then issued a show cause notice to the airline on July 6.

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"In view of the findings of various spot checks, inspections and the reply to the show cause notice submitted by SpiceJet, for the continued sustenance of safe and reliable transport service, the number of departures of SpiceJet is hereby restricted to 50 percent of the number of departures approved under summer schedule 2022 for a period of eight weeks," the aviation regulator said in its latest order.

On March 11, the DGCA approved 4,192 weekly domestic flights of SpiceJet for this year's summer schedule, which ends on October 29. Following the DGCA order, the carrier will be able to operate not more than 2,096 weekly flights for the next eight weeks.

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