After rising 20% during the previous trading session, SpiceJet shares jumped 7.77% to hit a new 52-week high of ₹69.20 per share.
SpiceJet shares increased by 7.77% today, marking the second straight trading day of growth, and they now stand at a new 52-week high of ₹69.20 a share. This comes after the market had a significant 20% increase the day before.
Several encouraging occurrences in recent weeks have drawn attention to SpiceJet’s stock. The business declared today that it is interested in acquiring Go First and that it plans to make an offer following a comprehensive investigation into the financially struggling carrier.
“SpiceJet Limited has expressed interest in the Go First Professional Resolution and wishes to submit an offer post-diligence to create a strong and viable airline in a possible combination with SpiceJet,” the company stated in today’s exchange filing.
Go First declared bankruptcy in May of this year, citing a loss caused by “faulty” Pratt & Whitney engines that grounded nearly half of its 54 Airbus A320neos. Notably, for the first time, an Indian airline has intentionally filed for bankruptcy in order to restructure its contracts and debt.
SpiceJet’s board of directors recently approved and began the process of raising about US$270 million in new capital through a combination of equity and warrants. With the new round of financing, the company hopes to increase its fleet in 12-18 months by un-grounding certain planes and leasing others.
The National Company Law Tribunal (NCLT) denied an insolvency case filed by aircraft lessor Willis Lease Finance Corporation, which was seeking payment. SpiceJet granted more than 48 million shares to nine aircraft lessors in August to settle outstanding debts totaling $2.31 billion (about $28 million).
Meanwhile, SpiceJet’s domestic market share increased from 5% in October to 6.2% in November. SpiceJet had the greatest passenger load factor or capacity utilization in November, at 90.8%, compared to 90.1% in October.
The company recorded a net loss of 428 crore for the September quarter (Q2 FY24). This was a significant improvement above the net loss of 835 crore in Q2 FY23, owing mostly to lower expenses.
Total expenses for Q2FY24 were Rs. 2,175 crore, a decrease from Rs. 2,935 crore in the previous year’s similar period. Meanwhile, overall income was 1,725 crore, a decrease from the 2,101 crore reported in the same period last year.
