SpiceJet plans liability overhaul by March, shares surge 7%
What's the story
SpiceJet has announced plans to further strengthen its balance sheet by restructuring liabilities in the second half of FY26. The move comes after a string of positive developments including settlement of dues, improved credit ratings, and new aircraft leases. These factors are expected to double the airline's operating fleet during the winter schedule. Following the announcement, SpiceJet shares surged 7% today as investors reacted positively to the restructuring plan and growth prospects.
Financial strategy
SpiceJet's liability restructuring and financial performance
SpiceJet has said that "liability restructuring remains an ongoing process," with a significant portion expected to be restructured in Q3 and Q4. This is likely to strengthen the airline's balance sheet. However, despite these efforts, the airline reported a 42% year-on-year increase in net loss for Q2FY26, amounting to ₹635 crore due to adverse foreign exchange impacts.
Operational hurdles
SpiceJet's operational challenges and market share
Along with the financial losses, SpiceJet also witnessed a 14% decline in revenue from operations during the same period. The airline attributed these results to costs related to aircraft grounding, rupee depreciation, and Pakistan airspace closure. In September quarter, the company's operating fleet remained unchanged year-on-year with 19 active aircrafts. Consequently, its domestic market share fell from 3.2% in January to 1.9% in September.
Future outlook
SpiceJet anticipates growth and improved financial performance
Despite the challenges, SpiceJet is optimistic about future growth. Last week, the airline's chairman Ajay Singh said investments in fleet revival will start showing results from Q3 onward. "With aircraft additions already underway and our network expanding rapidly, SpiceJet is now on a clear trajectory toward stronger operational and positive financial performance in the second half of the year," he added.