Shares of SpiceJet surged by 8 percent in early trading on March 14, following the announcement of finalised lease agreements for 10 aircraft. The budget airline’s proactive approach underscores its commitment to enhancing capacity ahead of the upcoming summer schedule.
As of 10:53 am, SpiceJet’s shares were trading at Rs 53.56 on the National Stock Exchange (NSE), reflecting investor optimism in response to the airline’s capacity expansion plans.
The decision to lease additional aircraft aligns with SpiceJet’s strategy to ensure seamless connectivity and address the anticipated surge in passenger demand during the peak travel season. With the arrival of three new airframes as part of the recent agreements, SpiceJet reinforces its fleet capabilities to cater to the growing needs of air travelers.
Moreover, these lease settlements with major aircraft lessors have translated into significant cost savings for the low-cost carrier, amounting to Rs 685 crore.
While the stock witnessed a decline of up to 10 percent in the previous session following the resignations of Chief Operating Officer (COO) Arun Kashyap and Chief Commercial Officer (CCO) Shilpa Bhatia, the current surge indicates a rebound fueled by bargain buying and investor confidence in SpiceJet’s strategic restructuring.
Clarifying the management changes, SpiceJet’s leadership emphasized that these departures are part of the airline’s strategic realignment and assured investors of continued revenue growth and robust load factors.
“With recent capital infusion, SpiceJet has expedited the resolution of previous disputes and is well-positioned to enhance its capacity, accelerate expansion, and maintain a significant presence in the Indian aviation sector,” stated the airline’s management.
