The directors at SpiceJet (SG, Delhi International) approved a INR30 billion rupee (USD358 million) capital raising during a July 23 board meeting. The airline will raise the funds via institutional placements to qualified institutional buyers. This follows SpiceJet’s board backing a proposal in January to raise around INR22.5 billion (USD269 million), of which around INR10.6 billion (USD127 million) has been raised so far.
SpiceJet is using the money to strengthen its balance sheet and get its operations back on track after years of disarray. It said the funds would help improve operational efficiencies, help pay for technological improvements, and may go towards new aircraft acquisitions. However, SpiceJet's filing to the Bombay Stock Exchange on the board's decision did not say at what price it would sell the shares.
Measured by weekly available seat capacity, SpiceJet is currently India's sixth-largest domestic airline, trailing IndiGo Airlines, Air India, Vistara, AIX Connect, and Akasa Air. Its domestic market share shrank from 5.4% in May 2023 to 4% in May 2024 as it continues to grapple with large numbers of out-of-service aircraft. According to ch-aviation fleets data, thirty-five of SpiceJet's 56 planes are on the ground, including three of five B737-700s, all three B737-700(BDSF)s, three of seven B737-8s, five of fourteen B737-800s, all three B737-900ERs, and eighteen of twenty-four DHC-8-Q400s. The airline is mitigating this somewhat by wet-leasing in seven aircraft, taking the number of currently operational aircraft to 28.
SpiceJet recently reported its latest quarterly and financial year results. For the financial year ending March 31, 2024, it reported a consolidated loss of INR4.237 billion (USD50.6 million), an improvement on the INR15.13 billion (USD180.7 million) loss posted for the previous year. SpiceJet has now posted losses for six consecutive years.
