Categories: Business

SpiceJet Flies High: Outpaces Competition In Yields, Preps For Aircraft Comeback

SpiceJet’s shares opened at ₹46 on Monday, jumping nearly 5% from Friday’s close of ₹43.81. However, the stock quickly retraced as traders locked in quick gains.

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Published by Aishwarya Samant
Edited by Suyash Shah
Last updated: June 20, 2025 19:48:42 IST

SpiceJet stormed the market on Monday, June 16, as its shares shot up over 5% in early trade, riding high on its record-breaking Q4 FY25 results. The airline’s blockbuster earnings sparked a sharp rally, but the excitement didn’t last long. Investors wasted no time booking profits, which swiftly pulled the stock back to the flatline. By mid-morning, the early gains had nearly evaporated. At 10:30 AM, SpiceJet shares hovered at ₹44 on the BSE, holding on to a modest half-a-percent gain. The quick profit-taking came after SpiceJet delivered its highest-ever quarterly net profit and reported a full-year profit for the first time in seven years. The market cheered the turnaround story, but traders chose to lock in gains just as fast. The stock’s brief morning rally reflected the tug-of-war between bullish sentiment and cautious investors looking to capitalise on the sudden upswing. SpiceJet’s sharp start turned into a more measured pace.

SpiceJet’s Profit Engines Roar To Life

The airline posted its highest-ever quarterly net profit of ₹319 crore for Q4 FY25, delivering a stunning 12-fold jump from ₹26 crore in the previous quarter. SpiceJet also closed the financial year with a net profit of ₹48 crore, snapping a six-year loss streak. Last year, the airline reported a hefty ₹404 crore loss, but this year’s numbers show that SpiceJet has flipped the script.

SpiceJet boosted its profitability by focusing on high-revenue non-metro routes, streamlining operations, and squeezing costs. The airline’s yield jumped to ₹6.4 per km, rising 28% year-on-year, and outpacing IndiGo’s ₹5.3 per km yield. Nuvama Institutional Equities credited the airline’s smart route planning and a bumper travel season driven by the 45-day Maha Kumbh festival.

The Numbers Fly High, But Can They Cruise?

SpiceJet’s earnings didn’t just impress—they skyrocketed. The airline’s EBITDA soared to ₹527 crore from ₹209 crore in the previous quarter, while revenue climbed 17.6% sequentially to ₹1,942 crore. Passenger demand kept seats full, as SpiceJet locked in an impressive 88.1% load factor.

The airline’s ambitious plans didn’t stop with profit announcements. SpiceJet kicked off a ₹3,000 crore Qualified Institutional Placement (QIP) to repay outstanding debts and revive its grounded aircraft. Nuvama believes the move will help the airline, but they expect the recovery to take time. They maintain a ‘Hold’ rating with a target price of ₹48 per share.

So, can SpiceJet sustain this momentum? Investors certainly want to know if this rally will hold altitude or if market turbulence waits just ahead.

SpiceJet Restructures With Carlyle Aviation To Smooth The Path

SpiceJet also landed a key restructuring deal with Carlyle Aviation Management. The two companies signed a term sheet to reorganise SpiceJet’s aircraft lease dues worth $121 million. SpiceJet now plans to settle these obligations through the issue or sale of securities, a move that promises to ease its financial pressure.

By taking proactive steps, SpiceJet actively cleaned up its balance sheet and created a more stable runway for future operations. This restructuring shows that the airline isn’t just coasting—it’s working hard to stay in the air.

SpiceJet’s shares opened at ₹46 on Monday, jumping nearly 5% from Friday’s close of ₹43.81. However, the stock quickly retraced as traders locked in quick gains.

Now, all eyes remain on whether SpiceJet can keep flying high or if this impressive takeoff will face market headwinds. Either way, the ride just got a lot more interesting—so stay strapped in!

Also Read: Crude Prices Soar Amid Middle East Crisis: Is It Time To Bet On ONGC And Oil India? Analysts Stay Bullish

Published by Aishwarya Samant
Last updated: June 20, 2025 19:48:42 IST

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