SpiceJet Aims for 70 Aircraft by 2026 Amid Financial Restructuring Plans

India’s Low-cost carrier SpiceJet is planning a major expansion, with a goal to add 75 new aircraft to its fleet over the next two years. This growth initiative is fueled by a recent $30 million USD investment raised through a Qualified Institutional Placement (QIP), according to CEO Ajay Singh.

Singh told ET Now that the capital infusion aligns with SpiceJet’s strategy to increase its fleet size from the current 25-28 aircraft to over 100 by 2025. The airline plans to acquire 40 to 45 aircraft from the secondary market to support its expansion efforts, which will strengthen its operational capacity.

SpiceJet’s financial struggles have been well-documented in recent months, with its inactive fleet growing to 40 aircraft. Out of its total fleet of 56, only 16 aircraft are currently operational, alongside five wet-leased planes. The inactive aircraft were grounded due to lease defaults and financial constraints, a situation the airline hopes to resolve with the new funding. Singh has set a target to have 40 aircraft back in the air by March 2025, with plans to add an additional 40 planes over the following year. This will include the acquisition of some short-term wet-leased aircraft to support the airline’s expansion.

The move is part of SpiceJet’s broader plan to capitalize on market opportunities, similar to its rapid growth in 2015. Singh expressed confidence that current market conditions are ripe for growth. The additional funding will also be used to meet financial commitments, including statutory dues and employee payments.

Despite the expansion plans, SpiceJet’s shares dipped 7.18% on Wednesday, closing at Rs 61.30 per share on the BSE. Nonetheless, the airline remains optimistic about its future growth and operational improvements.

SpiceJet’s expansion plan is part of a broader effort to stabilize its operations and return to profitability. With a strengthened financial position and renewed investor confidence, the airline is poised to reclaim its status as a key player in India’s aviation sector. However, its ability to navigate the ongoing insolvency claims and restore its grounded fleet will be critical to achieving its 70-aircraft target by 2026.

Sources: AirGuide Business airguide.info, bing.com, travelandtourworld.com