SpiceJet Shares Hit 52-Week High Amid Positive Developments

SpiceJet Shares Hit 52-Week High Amid Positive Developments

VoM News Desk | December 19, 2023 | 01:23 PM IST | Breaking News | Follow on Google News

SpiceJet Shares Hit 52-Week High Amid Positive Developments Image/Mint

SpiceJet Shares Hit 52-Week High Amid Positive Developments

SpiceJet’s stocks continue their upward trajectory, witnessing a remarkable surge of 7.77% today, reaching a new 52-week peak of ₹69.20 per share, following a substantial 20% surge in the prior trading session.

The recent rally in SpiceJet’s stock is attributed to several positive developments. Notably, the company expressed keen interest in acquiring Go First, aiming to present an offer post-diligence to revive the financially distressed carrier.

In its exchange filing today, SpiceJet articulated its desire to collaborate with the Resolution Professional of Go First, striving to forge a robust and sustainable airline partnership.

Go First had filed for bankruptcy earlier this year due to issues linked with Pratt & Whitney engines, grounding a significant portion of its Airbus A320neo fleet.

SpiceJet’s board has also greenlit plans to raise approximately US$270 million through a blend of equity and warrants. This infusion of fresh capital is aimed at expanding its fleet, with aspirations to double it in 12–18 months, reactivating grounded aircraft, and leasing additional ones.

In recent developments, the National Company Law Tribunal dismissed an insolvency petition by an aircraft lessor, thereby easing some financial pressures. SpiceJet had previously allotted over 48 million shares to nine lessors to settle outstanding dues.

Amid these financial maneuvers, SpiceJet’s domestic market share saw an uptick to 6.2% in November from 5% in October, while its passenger load factor surged to 90.8% in November, marking an increase from 90.1% in October.

Although SpiceJet reported a net loss of ₹428 crore for Q2FY24, a notable improvement from the ₹835 crore loss in Q2FY23, this was attributed to decreased expenses. Total expenses stood at ₹2,175 crore for Q2FY24, a drop from ₹2,935 crore in the same period last year. However, total income declined to ₹1,725 crore from ₹2,101 crore in the corresponding period a year ago.

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VoM News Desk

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