SpiceJet shares end 6-day losing streak: What's fueling rally?
What's the story
SpiceJet's shares surged by a whopping 5% today, hitting an intraday high of ₹34.85. The spike in share price comes after the airline announced a financial settlement with Carlyle Aviation Partners, ending its six-day losing streak. The deal is said to ease some of the financial burden on the low-cost carrier and strengthen its balance sheet.
Settlement
Details of the financial settlement
The financial settlement with Carlyle Aviation Partners includes $79.6 million for future aircraft engine maintenance and $9.9 million in cash. This is expected to offset lease obligations of around $121.18 million, as per a regulatory filing by the company today. The deal also includes equity shares worth $50 million for Carlyle, with an option to adjust any future proceeds against SpiceJet's lease liabilities if they exceed this amount.
Remarks
SpiceJet chairman on deal
Ajay Singh, the Chairman and Managing Director of SpiceJet, called the deal an important step in the airline's restructuring efforts. He said it lowers liabilities and improves prospects for sustainable growth. The settlement comes after SpiceJet reported a consolidated net loss of ₹234 crore for Q1 FY2026 amid geopolitical and operational challenges.
Struggles
A look at the financials
SpiceJet's revenue from operations fell 36% year-on-year to ₹1,060 crore in Q1 FY2026, down from ₹1,646 crore in the same quarter of the previous fiscal. The Gurugram-based firm said its performance was significantly impacted by geopolitical tensions with a neighboring country and airspace restrictions in key markets. These factors have subdued leisure travel demand and delayed the return of grounded aircraft to service.