SpiceJet Ltd Share Price – NSE  / BSE

Air Transport Service, Small Cap

This initiative will significantly increase the current fleet size of 28 aircraft, even as some aircraft are redelivered to lessors during the same period.

SpiceJet has added 10 planes to its fleet since October 2024, comprising three previously grounded aircraft brought back into service and seven inducted on lease.

Over the past three months, the company’s network expansion strategy has resulted in the addition of more than 60 new flights, further enhancing its overall connectivity.

Ajay Singh, chairman and managing director, SpiceJet, said: “Our plan to bring 10 aircraft back into service by mid‐April is a reflection of SpiceJet’s unwavering commitment to its growth and operational excellence.

SpiceJet is on a strong path to recovery and growth, and we remain focused on providing reliable and affordable air travel to millions of Indians.

SpiceJet is a low-budget air carrier. The airline operates a fleet of Boeing 737s, Q-400s, & freighters and is the country's largest regional player operating multiple daily flights under UDAN, or the Regional Connectivity Scheme. The airline also operates a dedicated air cargo service under the brand name SpiceXpress, offering cargo connectivity across India and on international routes.

The scrip had tumbled 5.70% to end at Rs 49.66 on the BSE on Friday.

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SpiceJet will unground 10 aircraft by mid]April 2025 further strengthening its network and operational capabilities. These will include four Boeing 737 MAX planes.  

This initiative will significantly increase the current fleet size of 28 aircraft, even as some aircraft are redelivered to lessors during the same period. SpiceJet added 10 planes to its fleet since October 2024, comprising three previously grounded aircraft brought back into service and seven inducted on lease.

Over the past three months, SpiceJetfs network expansion strategy has resulted in the addition of more than 60 new flights, further enhancing connectivity and service options for its passengers

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SpiceJet has entered into a services agreement with StandardAero Inc., a leading U.S.-based engine MRO (maintenance, repair and overhaul) provider and a 'Premier MRO' provider for CFM LEAP-1B engines. This collaboration will enable the restoration of SpiceJet's grounded Boeing 737-8 MAX fleet.

The agreement follows successful arrangements with CFM International, Inc., the OEM for LEAP-1B engines, and the lessor for the 737 MAX aircraft. These developments pave the way for the un-grounding and return to service of three Boeing 737 MAX aircraft by April 2025.

This initiative is a key part of SpiceJet's strategic efforts to restore its fleet, enhance operational capabilities, and support its rapid expansion plans.

As part of the global deal, CFM International will provide material and support services for these LEAP-1B engines for restoration of the engines, underscoring its collaborative partnership with the airline.

This collaboration and restructuring aligns with SpiceJet's robust fleet restoration strategy, which has seen rapid progress. In the past two months, SpiceJet has resolved disputes with multiple prominent lessors, including Export Development Canada, Engine Lease Finance Corporation, Babcock & Brown Aircraft Management, Aircastle (Ireland), Wilmington Trust SP Services (Dublin) Limited, Shannon Engine Support Limited and Genesis.

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Under the agreement, SpiceJet will pay Genesis $6 million, and Genesis will acquire $4 million in SpiceJet equity at a price of Rs 100 per share. The agreement will also result in a significant saving for the airline as it navigates a robust path toward long-term growth.

The settlement with Genesis underscores SpiceJet’s continued commitment to restoring financial stability, achieving operational resilience, and reducing legal liabilities. Subject to the settlement terms being satisfied, both parties have agreed to withdraw all ongoing litigation and disputes related to this matter at the appropriate forums.

This settlement follows a series of successful resolutions with other lessors, including Horizon Aviation, Engine Lease Finance Corporation, Aircastle, Wilmington Trust SP, Shannon Engine Support, and Export Development Canada, among others.

In September 2024, Carlyle Aviation agreed to convert $30 million of lease arrears into SpiceJet equity at Rs 100 per share, signalling increasing confidence from stakeholders in the airline’s financial and operational recovery. The airline's recent financial progress has been recognised by Acuité Ratings & Research Limited, which recently upgraded SpiceJet's credit rating by four notches.

Ajay Singh, Chairman & MD, SpiceJet, said, “This settlement marks another crucial step in our journey towards financial stability. We are pleased to have resolved this matter amicably with Genesis through constructive negotiations. This agreement, which includes Genesis acquiring an equity stake in SpiceJet, will significantly reduce our financial liabilities and further strengthen our balance sheet.”

SpiceJet is a low-budget air carrier. The airline operates a fleet of Boeing 737s, Q-400s, & freighters and is the country's largest regional player operating multiple daily flights under UDAN, or the Regional Connectivity Scheme. The airline also operates a dedicated air cargo service under the brand name SpiceXpress, offering cargo connectivity across India and on international routes.

The low-cost air carrier’s standalone net profit declined 26.69% to Rs 149.96 crore on 15.3% fall in revenue from operations to Rs 1,695.52 crore in Q1 FY25 over Q1 FY24.

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