MUMBAI: Low-cost carrier SpiceJet is setting the stage for a major turnaround, aiming to restructure a significant portion of its liabilities in the second half of the current fiscal year (H2FY26) and double its operating fleet during the winter schedule. The strategy is part of an aggressive push to strengthen the balance sheet and move towards profitability, despite reporting a widened net loss for the second quarter.
In its latest investor presentation, the airline confirmed that liability restructuring is an “ongoing process” with a substantial portion expected to be completed in Q3 and Q4 of FY26. This effort, coupled with recent settlements of dues, improved credit ratings, and new aircraft leases, is intended to provide a solid foundation for financial recovery.
Fleet Expansion to Drive Turnaround
The key operational highlight of the plan is the expected expansion of the active fleet. The airline’s current operating fleet stood at a flat 19 aircraft in the September quarter, which contributed to a dip in domestic market share to 1.9 per cent from 3.2 per cent in January.
However, SpiceJet has signed fresh aircraft leases and is working to bring grounded Boeing aircraft back into service, projecting that the operating fleet will double during the current winter schedule.
- Impact: This increase in capacity and better aircraft utilisation are expected to materially improve unit costs and lift overall profitability by driving significant revenue growth.
- CMD’s View: SpiceJet Chairman Ajay Singh stated that the investments in fleet revival will start “yielding results from the third quarter onwards.” He added, “SpiceJet is now on a clear trajectory towards stronger operational and positive financial performance the second half of the year.”
Q2 Loss Widens Amid Operational Headwinds
Despite the optimistic outlook, the airline reported a 42 per cent year-on-year widening of its net loss to ₹635 crore in Q2FY26. Revenue from operations also fell by 14 per cent during the same period.
The company attributed the widened loss and dip in revenue primarily to:
- Adverse forex impact (rupee depreciation).
- Costs related to aircraft grounding and re-induction.
- Impact of Pakistan airspace closure on operating costs.
The company expects growth in passenger traffic in the coming months, aligning with the festive and holiday season demand.
