SpiceJet’s shares witnessed a significant 8% surge in early trade on March 14th following the budget airline’s announcement of finalizing lease agreements for 10 aircraft. This strategic move aims to enhance the airline’s capacity ahead of the upcoming summer schedule.
As of 10:53 am, shares of SpiceJet were trading at Rs 53.56 on the National Stock Exchange (NSE). The surge in share price reflects investor confidence in SpiceJet’s proactive approach to meet the anticipated surge in passenger demand during the peak travel season.
This initiative underscores SpiceJet’s commitment to providing seamless connectivity and catering to the growing needs of travelers. By augmenting its fleet capacity, SpiceJet aims to ensure a smooth travel experience for passengers while capitalizing on the opportunities presented by increased travel demand.
The market’s positive response to this development highlights SpiceJet’s agility and readiness to adapt to changing market dynamics, positioning the airline for growth and success in the competitive aviation industry.
With the acquisition of these additional aircraft, SpiceJet is well-equipped to address the escalating demand for air travel, especially during the bustling summer season. The recent settlement agreements have already bolstered the airline’s fleet capabilities, with three airframes already in possession.
These settlements with key aircraft lessors have also resulted in savings of Rs 685 crore for the low-cost airline.
Some bargain buying also played a factor in lifting shares of the airline. In the previous session, the stock plunged as much as 10 percent after two executives from the company’s senior management, Chief Operating Officer (COO) Arun Kashyap and Chief Commercial Officer (CCO) Shilpa Bhatia tendered their resignations.
The management said that this was a part of SpiceJet’s strategic restructuring and the company continues to see significant growth in revenue and load factor.
“With the recent infusion of funds, SpiceJet has expedited the resolution of all previous disputes. The company is poised to enhance its capacity, expand swiftly, and maintain its significant presence in the Indian aviation sector,” the management stated.
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