SpieceJet SpiceJet eyeing growth with aircraft ungrounding, fleet expansion, exclusive destinations: Report
New Delhi/IBNS: Indian low-cost airline SpiceJet, which is struggling with heavy financial dues, said on Friday (Sept 6) that it expects a 'promising growth' for its operations, helped by a likely ungrounding of aircraft, impending expansion of the aircraft fleet, exclusive access to regional destinations, and also access to international destinations.
The Gurugram-headquartered carrier is struggling with grounded aircraft, which has slowed down its operations to a snail's pace.
However, SpiceJet expects 28 of its aircraft to be ungrounded, doubling its operational fleet capacity, reports Moneycontrol.
The airline's operational fleet has been reduced from 74 aircraft in 2019 to 28 in 2024, with 36 aircraft grounded on account of dues and fund issues, SpiceJet stated in an investor presentation.
SpiceJet was hit by a worldwide grounding of Boeing 737 Max aircraft in March 2019, and it also faced another grounding of aircraft due to inability to make lease payments, the company said in the presentation.
Meanwhile, a substantial increase in crude oil prices also hit the low-cost carrier with higher fuel costs.
"Brent crude oil reached ~$ 120 per barrel, while ATF price went up to ~ $175 per barrel, breaching the all-time high in June 2022," SpiceJet said in the presentation.
In the dues to be paid, SpiceJet owes about Rs 3,700 crore in outstanding lessor, engineering and EDC (Early Display Configuration) liabilities, which led to grounding of aircraft.
The company has about Rs 650 crore outstanding statutory dues, as per reports.
According to Moneycontrol, the share price of SpiceJet has moved higher by 1.35 percent on Year-to-date rate, while the shares have delivered 54.81 percent returns in the last one year.
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