Airline Stock Under Rs 50 in Green After Company to Re-Induct First Grounded 737 MAX Aircraft into Service
The stock is up by 7.54 per cent from its 52-week low of Rs 43.61 per share.
Today, shares of SpiceJet Ltd jumped 6.9 per cent to Rs 46.90 per share from its previous closing of Rs 43.87 per share with 1.50 times spurt in volume. The stock is up by 7.54 per cent from its 52-week low of Rs 43.61 per share.
SpiceJet is set to welcome back its first Boeing 737 MAX aircraft into service on January 29, 2025, marking a significant step in the airline's fleet recovery following a period of grounding. This reintroduction comes after SpiceJet secured agreements with StandardAero and CFM International to support the aircraft's return to operations. The airline aims to bring ten aircraft, including four 737 MAX planes, back into service by mid-April 2025, with this being the first 737 MAX to rejoin the fleet.
The return of the fuel-efficient 737 MAX will prove invaluable to SpiceJet, allowing for unrestricted operations to high-demand destinations like Jeddah and Riyadh. This aircraft's lower fuel consumption, reduced maintenance needs, and increased utilization will translate into substantial cost savings, further optimizing the airline's operations. Since October 2024, SpiceJet has strengthened its fleet by adding ten aircraft, including three previously grounded planes and seven new leases. This expansion has facilitated the introduction of over 60 new flights in the past three months, significantly enhancing connectivity and providing passengers with a wider range of travel options.
Earlier, in anticipation of the Maha Kumbh Mela, SpiceJet announced new direct flights from Guwahati, Chennai, and Hyderabad to Prayagraj, alongside increased frequency on existing routes from key cities like Delhi, Mumbai, Ahmedabad, Jaipur, and Bengaluru. These measures aim to accommodate the expected surge in pilgrims during this significant religious event, offering greater travel convenience and flexibility for devotees.
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About the Company
SpiceJet is India's favourite airline that has made flying affordable for more Indians than ever before. SpiceJet is an IATA-IOSA certified airline that operates a fleet of Boeing 737s & Q-400s and is one of the country's largest regional players operating multiple daily flights under UDAN or the Regional Connectivity Scheme. Most of the airline's fleet offers SpiceMax, India's most spacious economy-class seating.
According to Quarterly Results, the company reported net sales of Rs 1,708 crore, operating profit of Rs 49 crore and net profit of Rs 158 crore in Q2FY25. In its annual results, the company reported net sales of Rs 7,085 crore, an operating loss of Rs 644 and a net loss of Rs 424 crore in FY24. The company has a market cap of over Rs 5,700 crore. Investors should keep an eye on this small-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.