Airline Stock Under Rs 60 In Focus As Company to Unground 10 Aircraft by Mid‐April 2025
This move will substantially increase the airline's current fleet size of 28 aircraft, despite the redelivery of some planes to lessors during the same period.
SpiceJet Ltd is set to significantly bolster its fleet and operational capabilities by ungrounding 10 aircraft, including four Boeing 737 MAX planes, by mid-April 2025. This move will substantially increase the airline's current fleet size of 28 aircraft, despite the redelivery of some planes to lessors during the same period. Since October 2024, SpiceJet has already added 10 aircraft to its fleet, a combination of previously grounded aircraft returning to service and new leased aircraft. This expansion has been accompanied by significant network growth, with the airline adding over 60 new flights in the past three months, enhancing connectivity and passenger options.
A key step towards this expansion was the recent agreement signed by SpiceJet with StandardAero Inc. for the restoration of its grounded MAX fleet. This agreement, following successful collaborations with engine manufacturer CFM International and a key lessor, paved the way for the return to service of three Boeing 737 MAX aircraft. Furthermore, SpiceJet has made significant strides in resolving disputes with several major lessors and partners, including Export Development Canada, Engine Lease Finance Corporation and Aircastle. These resolutions demonstrate the airline's commitment to operational stability and growth.
In conclusion, SpiceJet's strategic initiatives, including the ungrounding of 10 aircraft, the addition of new flights, and the resolution of critical disputes, signal a period of significant growth and expansion for the airline. This proactive approach aims to strengthen its market position, enhance its operational capabilities, and improve its passengers' services.
DSIJ’s 'Tiny Treasure' service recommends researched Small-Cap stocks with Inherent Growth Potential. If this interests you, do download the service details here.
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 Q1FY25. 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 6,000 crore. According to the shareholding pattern of September 2024, FIIs bought 27,86,70,546 shares or a 21.06 per cent stake and increased their stake to 22.87 per cent compared to 1.81 per cent in June 2024 while DIIs bought 6,74,55,674 shares or 3.30 per cent stake in the company and increased their stake to 8.45 per cent in September 2024 compared to June 2024. Investors should keep an eye on this small-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.