 "Fueled by Rs 3,000 crore fundraise, SpiceJet to aim 100 aircrafts by 2026")
Domestic carrier SpiceJet has set a target for 100 aircraft by 2026, Chairman Ajay Singh told Economic Times on Monday. Singh’s remark followed as the airline has secured Rs 3,000-crore fund raise through the qualified institutional placement (QIP) route.
“...SpiceJet was hamstrung by two black swan events one after the other – the worldwide grounding of Boeing 737 Max, followed by Covid pandemic,” Singh told ET in an interview. Reiterating that the airline’s fundamentals are strong, Singh said that they have the infrastructure to become a 100-strong fleet again.
The QIP, which closed on September 18, was oversubscribed, which SpiceJet is seeing as a demonstration of investor confidence. The QIP saw participation from marquee funds such as Tata Mutual Fund, Discovery Global and Goldman Sachs.
SpiceJet’s financial troubles
With cash in hand, the airline hopes to “restore” its reputation that took a hit in the past few years. In August, the Gurugram-based airline reported a 20 per cent year-on-year (Y-o-Y) decline in consolidated net profit. Its profit fell to Rs 158.1 crore in the first quarter (Q1) of 2024-25 (FY25), mainly due to the persisting financial crisis.
In the financial year 2023-24, SpiceJet reported a loss of Rs 418.3 crore, marking six straight years of losses. Its last profit was reported in 2017-18. The airline is also involved in legal battles over unpaid dues to aircraft lessors, engine lessors, lenders, and former promoter Kalanithi Maran.
On September 11, the Delhi High Court upheld an order to ground three engines leased to SpiceJet by Team France 01 SAS and Sunbird France 02 SAS. The court’s order leaves SpiceJet to ground the affected planes unless it seeks relief from the Supreme Court. The airline currently operates 21 aircrafts, it told the court.