Financially troubled low-cost carrier SpiceJet on Friday said it plans to bring back 10 of its grounded aircraft to service by mid-April 2025. The move aims to expand the airline’s fleet to 38 aircraft, up from its current size of 28. The new additions will include four Boeing 737 MAX aircraft while the remaining units will be sourced from the airline’s fleet of Boeing 737s and Q-400s.
The announcement comes at a critical time for SpiceJet, as its operational performance has seen a decline. According to data from the Directorate General of Civil Aviation (DGCA), the airline’s total number of departures dropped 30% to 4,408 in November 2024, compared to 6,311 in January 2024. Passenger numbers also plummeted 38% to 576,143 in November 2024, as against 930,495 in January 2024.
This is another effort by the Gurugram-headquartered airline to recover from a series of operational challenges. The airline had earlier raised Rs 3,000 crore through a Qualified Institutional Placement (QIP) to bolster its financial position. Since October 2024, SpiceJet has already added 10 aircraft, comprising three previously grounded planes and seven leased units, the company said.
Ajay Singh, chairman and managing director of SpiceJet, expressed confidence in the airline’s recovery, stating, “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”. The airline did not respond to FE’s query on how it will decide to bring back which aircraft to service, till the time of going to the press.
The grounding of aircraft has been a major factor behind the decline in the airline’s operations. Even with the addition of 10 aircraft, 53 of its planes will remain grounded. SpiceJet’s website lists a fleet size of 91 aircraft, highlighting the significant gap between its current operational fleet and total aircraft at its disposal.
Despite the challenges, the airline reported a total of 51,558 departures and more than 7 million passengers carried in the first 11 months of 2024.
In recent months, SpiceJet has also signed agreements with Maintenance, Repair, and Overhaul (MRO) providers and resolved disputes with several major lessors and partners.
The low-cost carrier has recently signed an agreement with US-based engine MRO provider StandardAero, which will assist in the restoration of the airline’s grounded MAX fleet. It has also 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 demonstrating its commitment to operational stability and growth.
In addition, SpiceJet has partnered with CFM International, the manufacturer of LEAP-1B engines and a key lessor to support the return of its Boeing 737 MAX aircraft to service.
While the airline’s announcement was initially met with optimism, SpiceJet’s stock experienced a steep decline in Friday’s trading session. The share price dropped by 6.95%, hitting an intraday low of Rs 49, and closed the day 5.70% lower at Rs 49.60. Over the past month, SpiceJet’s stock has fallen by 18.33%.