SpiceJet soars on fleet expansion plans; to induct 10 aircrafts by end of Nov'24

SpiceJet surged 8.15% to Rs 62.25 after the company announced its plans to significantly expand its fleet with the induction of ten aircraft by the end of November 2024.

The company stated that seven of these aircraft will be acquired on lease, while three previously grounded SpiceJet planes are being reintroduced into service.

The airline has already signed agreements for the leased aircraft, with the full induction of all seven planes expected by November 15.

Two of these leased aircraft have already arrived in India and are scheduled for immediate induction.

"SpiceJet will also operationalise its grounded planes in phases, with the first three set to re‐enter service before the end of November, the company said in a statement.

This fleet expansion follows SpiceJets qualified institutional placement (QIP), which raised Rs 3,000 crore. In addition to the QIP, the airline is set to receive an additional Rs 736 crore from a previous funding round, further bolstering its financial stability and growth trajectory.

Ajay Singh, chairman and managing director of SpiceJet, said: This addition is crucial as we continue to meet the growing demand for air travel while strengthening our operational capabilities.

With the capital raised, SpiceJet is well‐positioned to offer improved services and an expanded route network.

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 63 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 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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