Indian low-cost operator SpiceJet is attempting to raise over $350 million to “stabilise” its operations and financial position.
The airline is in the process of raising Rs30 billion ($357 million) through a qualified institutional placement, and expects to complete the fundraising by end-September.
The fresh funds will go towards fleet expansion, as well as the settlement of liabilities and to “enhance operational capabilities…[and] improve its overall market competitiveness,” the airline states.
Airline chief Ajay Singh adds that the fundraising “will be instrumental in reinforcing our financial foundation and positioning SpiceJet for sustained success”.
This is the latest round of fundraising the airline has undertaken – it last did so in late 2023 – as it faces financial and legal challenges.
Singh remains optimistic about the airline, adding that SpiceJet “believes in the resilience in our business model”.
The disclosure comes as the airline reports its financial results for the three months ended 30 June, which saw it remain in the black for the second consecutive quarter.
The low-cost carrier reported a net profit of Rs1.5 billion for the quarter, up 26% on the previous quarter, but down about 25% year on year.
Revenue fell about 9% year on year to Rs20.6 billion, outpacing a 7% decline in operating costs. The airline cut back on operations during the quarter amid its ongoing legal troubles.
The airline states: “SpiceJet remains focused on its long-term strategy of expanding its domestic and international network, investing in newer, more fuel-efficient aircraft, and leveraging technology to drive innovation and efficiency across its operations.”
