SpiceJet Shares Surge Nearly 5% As Airline Plans Winter Expansion

SpiceJet Ltd.'s stock soared nearly 5% on Wednesday, extending its recent rally amid strong demand and operational ramp-up plans. The company’s stock has risen nearly 10% in five days and 1.4% in a month.

The rally in Spicejet's share price also follows a recent meltdown faced by IndiGo flights nationwide.

India’s largest airline, IndiGo, has cancelled hundreds of scheduled flights in the past couple of days disrupting travel plans for passengers across major metro cities and regional airports. The cancellations coverd a wide range of domestic routes and a few international sectors, affecting operations from Delhi, Mumbai, Bengaluru, Chennai, Hyderabad, Kolkata, Goa, and several northeastern cities.

Meanwhile, Spicejet said that the airlines is witnessing strong and growing demand across key routes this winter, and looks forward to ramping up operations to ensure adequate capacity in India’s aviation market.

"As part of this effort, we plan to introduce up to 100 additional daily flights during the current winter schedule, subject to regulatory approvals," the operator said.

It further added that in the past two months, they have inducted 17 aircraft into active operations through a mix of damp-leased aircraft and the return of our own aircraft to service. "This enhanced fleet availability gives us the operational flexibility to deploy incremental capacity on high-demand routes and improve overall network resilience," the airline said.

"Our focus in the current schedule period is to add several more aircraft, maximise aircraft utilisation and strengthen connectivity through better planning," it added.

The scrip rose as much as 4.93% to Rs 36 apiece. It pared gains to trade 1.19% higher at Rs 34.31 apiece, as of 11:16 a.m. This compares to a 0.15% advance in the NSE Nifty 50 Index.

It has fallen 42% in the last 12 months. Total traded volume so far in the day stood at 1.8 times its 30-day average. The relative strength index was at 40.