Low-cost carrier SpiceJet added one aircraft every nine days during the recently concluded December quarter to boost its operational fleet strength by 55%. The addition of 10 aircraft during the quarter helped it to launch flights to new stations and reconnect to destinations it had discontinued previously.
With 28 aircraft, Spicejet’s operational fleet is among the smallest in the industry, ahead of only Akasa Air (27). More than half of its planes remain grounded due to unpaid dues and cash shortage.
The recent fundraise of Rs 3,000 crore, of which Rs 800 crore was earmarked for reviving grounded aircraft, has allowed it to unground some of these and put them back into service. SpiceJet’s claims to be actively working to unground seven 737 Max, four 737 NG and six Q400, narrow body, short-haul planes, and at least 10 of these will be back in the air by April, 2025.
“The return of our grounded aircraft has enabled us to add 60 new flights, launch new stations like Shivamogga and Prayagraj, and revive previously served destinations such as Gorakhpur,” said a SpiceJet spokesperson to FE.
The ungrounding has helped spruce up SpiceJet’s market share. From an all-time low of 2% in September, 2024 the company has increased it to 3.2% by the end of January, 2025, according to data shared by the Directorate General of Civil Aviation (DGCA).
The positive impact of ungrounding aircraft and streamlining operations is evident on its financials too. SpiceJet’s total revenue surged 53% to Rs 1,651 crore in Q3 FY25 compared to the previous quarter, with the company reporting a profit of Rs 26 crore. For the first time in a decade, the company has turned net worth positive.
In December, SpiceJet signed an agreement with StandardAero, a US-based engine maintenance repair and overhaul (MRO) player, for the restoration of its grounded Max fleet.
Over the past three months, SpiceJet claims to have resolved disputes with several major lessors and partners, including Export Development Canada, Engine Lease Finance Corporation, Babcock & Brown Aircraft Management, Aircastle (Ireland), Wilmington Trust SP Services (Dublin), Shannon Engine Support among others.
“Looking ahead, strong demand and effective network optimization are expected to drive a double-digit growth in RASKs (revenue per available seat kilometre) during the fourth quarter of FY25 and first quarter of FY26,” the spokesperson added.
A post earnings presentation of SpiceJet states that out of the Rs 3,000-crore funding it received, Rs 370 crore will be used for new fleet induction. “International expansion remains a key focus area for us and we are actively planning multiple new stations,” said the spokesperson.