SpiceJet is navigating turbulent skies through a combination of debt restructuring, fleet revival, and external support. Reporting a deepened loss of Rs. 621.5 crore in Q2 FY26, led by rupee depreciation, aircraft grounding, and airspace restrictions, the airline has remained committed to achieving its turnaround.
The airline has struck multiple settlements with lessors and creditors. In Q3 FY25, it cleared about Rs. 1,700 crore in outstanding lessor and engine dues by paying Rs. 1,233 crore, thus saving nearly Rs. 467 crore.
Earlier, a Rs. 3,000 crore capital infusion via a Qualified Institutional Placement provided critical liquidity. It also recently secured $89.5 million through a settlement with Carlyle Aviation Partners, which includes maintenance reserves and credits toward lease obligations. Separately, the airline has repaid $24 million to Credit Suisse, closing a long-standing legal dispute.
SpiceJet has improved its utilization and yield. The airline reported its highest-ever quarterly profit at Rs. 319 crore in Q4 FY25, helping it log a full-year net profit of ₹48 crore, its first annual profit in seven years. The airline's passenger load factor has remained high, at around 87 to 88 percent, even as it rebuilds its network.
Much of SpiceJet's MAX 8 fleet remains grounded, compelling it to continue using expensive wet leases to maintain capacity. Management is pushing hard to reactivate its own aircraft and add narrowbody jets. The airline plans to return 10 grounded planes by April 2026, so only around 21 planes were in operation by September 2025.
Ajay Singh, the promoter, has continued to support the airline, thereby indicating his belief in its turnaround plan. Its auditor still expresses going concern warnings, citing negative net worth and current liabilities far exceeding current assets.
SpiceJet believes it can recover through cash flow generation and settlements, though the weak rupee is causing sharp foreign exchange losses.
Wet-leasing is costly, and till its own planes are back, there is bound to be cost pressure. The SpiceJet turnaround thus depends on disciplined cash burn and timely aircraft revival; any delay in this process could jeopardize the recent gains.
Though still incurring losses in some quarters, SpiceJet is leveraging capital infusions, restructuring, and operational discipline to keep the planes flying. A recovery will solidify only as it manages to monetize fleet revival and sustains positive cash flows.