Whalesbook
SpiceJet announced plans to double its operational fleet by the end of 2025, projecting a significant expansion in its network reach and capacity. This comes as the airline reported a wider consolidated net loss of Rs 621 crore for the July-September quarter of FY26, a rise from Rs 458 crore in the previous year, with revenue declining 13%.
SpiceJet is set to significantly expand its operations, aiming to double its operational fleet and nearly triple its Available Seat Kilometers (ASKM) by the end of 2025. The airline plans to bring back up to eight grounded Boeing aircraft into service by April 2026, with four planned for early winter to meet peak demand. Two aircraft have already rejoined the fleet, with two more expected by December 2025 and the remaining four by early summer 2026.
This expansion is expected to improve Cost per Available Seat Kilometer (CASK) and lift overall profitability. The company also highlighted that liability restructuring remains an ongoing process, with significant restructuring anticipated in Q3 and Q4 of FY26 to strengthen its balance sheet.
Despite these future growth plans, SpiceJet reported a widened consolidated net loss of Rs 621 crore for the second quarter of FY26, compared to Rs 458 crore in the year-ago period. Consolidated revenue from operations fell by 13% to Rs 792 crore from Rs 915 crore in Q2 FY25. The company attributed the weak results to recalibrating dollar-based future obligations, carrying costs of the grounded fleet, additional expenses for aircraft readiness (RTS), and continued airspace restrictions that escalated operating costs.
Recent stock performance shows gains of over 12% in the past month, but a decline of over 18% in the last six months and more than 35% year-to-date in 2025.
Impact
This news could positively influence investor sentiment regarding SpiceJet's future operational capacity and growth potential. However, the recent widening net loss indicates persistent financial challenges that need to be addressed. The market will likely watch for successful execution of the fleet expansion and the impact of liability restructuring on its financial health. Rating: 6/10
Difficult Terms Explained:
Available Seat Kilometers (ASKM): A measure of an airline's capacity, calculated by multiplying the number of seats available by the distance flown (in kilometers). It indicates the total potential passenger miles or kilometers an airline can carry.
CASK (Cost per Available Seat Kilometer): The cost incurred by an airline to operate one available seat for one kilometer. A lower CASK generally signifies better operational efficiency.
Consolidated net loss: The total loss of a parent company and all its subsidiaries after accounting for all revenues, expenses, interest, and taxes.
Consolidated revenue from operations: The total income generated by a parent company and its subsidiaries from their primary business activities.
RTS (Return to Service/Readiness to Serve): Refers to the expenses and processes involved in bringing grounded aircraft back into operational condition, including maintenance, repairs, and regulatory checks.
Liability restructuring: The process of renegotiating the terms of a company's debts or financial obligations to make them more manageable, potentially involving changes to repayment schedules, interest rates, or principal amounts.
