Shares of SpiceJet Ltd. plummeted 7% after reaching a day’s high of Rs 64.50 on 25th September, despite CMD Ajay Singh suggesting that the airline is taking strong steps to revive operations, settle outstanding dues, and position itself as a key player in the Indian aviation industry.

Singh stated that SpiceJet aims to expand its fleet from 28 aircraft to 100 within the next two years by ungrounding existing planes, targeting 40 aircraft by the end of FY 2025 and 80 by FY 2026.

In the near term, the airline plans to increase operations to 5,000 flights per month while minimising reliance on Boeing, which is currently facing challenges.

He expressed confidence that SpiceJet will soon settle all obligations, including Rs 650 crore in statutory dues and Rs 3,700 crore owed to lessors, stating that these amounts will significantly decrease in the coming months due to recent settlements with some lessors.

He also stated that SpiceJet is not facing any pilot shortages, as many pilots are eager to return after the latest fundraising round. Currently, the airline operates on a cash-and-carry basis at major airports and owes less than Rs 100 crore to them.

Singh acknowledged issues with employee salaries and Provident Fund (PF) contributions but assured that all employee-related dues, including PF and TDS, will be fully settled within this calendar year.

At 2:39 PM, the shares of SpiceJet were trading 5.72% lower at Rs 62.26 on BSE.

Feeling overwhelmed by the markets? Let Unicorn Signals be your guide. Our user-friendly app simplifies complex data and provides actionable trading signals. Download the app today and trade with confidence!