Multiple tailwinds for SpiceJet

Market share gains, profitable regional expansion bode well for volumes and yields

The SpiceJet stock gained 3.7 per cent on Wednesday, reacting to the news of the company gaining market share. Besides, last week’s announcement of the second phase of bidding for flights between smaller towns and cities under the regional connectivity scheme is another positive for the low-cost airline.

While the domestic passenger growth went up by 12.5 per cent year-on-year, SpiceJet logged 36.7 per cent growth in July. The company gained 160 basis points market share over the past two months, with half of the gain coming in July. Following engine-related issues, InterGlobe Aviation-run IndiGo recorded a growth of only 9.3