Shares of budget airline SpiceJet rose by as much as 5% to an intraday high of Rs 36 on Wednesday, December 10, marking the stock’s fourth consecutive day of gains. Over this four-day period, the stock has jumped 19%, extending its winning streak.
The surge comes in the wake of the DGCA’s directive for IndiGo to cut 10% of its winter flight schedule after a week of operational disruptions. IndiGo faced over 5,000 flight cancellations due to a shortage of pilots. With nearly 110 flights per day now expected to be redistributed to other carriers, competitors like SpiceJet stand to benefit from the additional demand.
Analyst Meeting Highlights Future Plans
On Tuesday, SpiceJet held an analyst meet. Domestic brokerage Prabhudas Lilladher noted that while the airline’s planned damp-lease aircraft additions could provide a short-term boost in capacity, a long-term recovery will depend on reactivating its grounded fleet. Eight Boeing aircraft are expected to return to service by April 2026, alongside new inductions.
The brokerage also highlighted that ongoing negotiations with lessors over outstanding dues are crucial. Any significant haircut on dues would materially improve the airline’s liquidity, giving it more financial flexibility.
New Aircraft Inducted to Strengthen Fleet
In operational updates, SpiceJet announced the induction of two Boeing 737 aircraft into its fleet. Both planes completed regulatory clearances and began commercial operations on November 26 and 29. They are currently deployed on important routes such as Delhi–Bangkok, Ahmedabad–Dubai, and Ahmedabad–Kolkata, enhancing both domestic and international connectivity.
Additional Flights to Assist Passengers
Last week, Chairman and Managing Director Ajay Singh said the airline would operate 100 additional flights in the coming days to help stranded passengers. Calling the recent disruptions “extremely unfortunate,” Singh added that SpiceJet aims to support travellers while appreciating the government’s decision to form a committee to investigate the crisis.
Despite Gains, Year-to-Date Losses Persist
Even after the recent rally, SpiceJet shares remain down 38% year-to-date, hovering close to their 52-week low of Rs 28.13.
IndiGo Faces Severe Operational Challenges
Meanwhile, IndiGo, which commands nearly 66% of India’s domestic aviation market, continues to struggle with operational issues due to new Flight Duty Time Limitations (FDTL) norms. The airline’s difficulty in adjusting pilot rosters under the revised rules caused a severe manpower crunch, resulting in over 1,000 flight cancellations on Friday alone.
Shares of IndiGo’s parent company, InterGlobe Aviation, have continued their decline, marking the ninth consecutive session of losses. Over the past eight sessions, the stock has lost more than 17%, wiping out nearly Rs 40,000 crore in market value.
