SpiceJet to consider fresh capital raise through equity, preference shares; shares rise 5%

Shares of struggling airline SpiceJet Ltd. rose 5% on Friday, November 13, as the airline said its board will consider a proposal to raise fresh capital through the issuance of equity shares, preference shares and other permissible instruments.

The airline said its board of directors will meet on Wednesday, November 18, to consider and approve the proposal for raising fresh capital through a preferential issue, qualified institutions placement or any other mode that the board may deem appropriate.

The proposed fundraise could also involve debt securities and other permissible instruments, subject to applicable laws, shareholder approvals and regulatory permissions.

SpiceJet said its trading window for dealing in the company's securities will remain closed until further notice.

Shares of SpiceJet have gained for three consecutive sessions and are higher in four of the past five trading sessions. However, the stock remains under significant pressure, having declined around 71% so far in 2026 and more than 76% over the past 12 months.

SpiceJet faces mounting operational pressure

The proposed capital raise comes at a time when SpiceJet is grappling with operational challenges, including frequent flight cancellations and a shrinking fleet.

The airline has reportedly been cancelling around 15-20 flights daily despite operating approximately 65 scheduled services. Sources had earlier told CNBC-TV18 that its operational fleet has been reduced to 12 aircraft, with three grounded over pending payments to lessors.

The disruptions are linked to mounting dues to aircraft lessors, oil companies, airport operators and ground-handling agencies. The airline has also been operating on a cash-and-carry basis, requiring upfront payments for critical services.

The financial strain has reportedly extended to employees, with sources indicating that salaries have remained unpaid since June 2026.

Dubai operations hit by payment dispute

SpiceJet also faced a disruption at Dubai Airport on November 12 after ground-handling company dnata suspended check-in services over unpaid dues. The move resulted in the cancellation of four flights scheduled to depart from Dubai, while only two services were allowed to operate.

The dispute involved outstanding payments of around 14 million UAE dirhams (approximately ₹35.8 crore) owed by the airline to Dubai Airports. The airport operator had reportedly warned SpiceJet on November 9 that check-in services would be suspended from November 12 if the dues were not cleared.

The Dubai Civil Aviation Authority also summoned the airline's station manager following the cancellations and directed SpiceJet to inform affected passengers and arrange alternative flights, accommodation and transport.

Responding to the disruption, a SpiceJet spokesperson said the airline was working with the concerned authorities to resolve the matter. The spokesperson added that the airline had adequate bank guarantee cover in place.

Weak financial performance adds to challenges

SpiceJet's financial performance has also reflected the pressure on its operations. In the September quarter of FY26, the airline reported a net loss of ₹621 crore, wider than the ₹458 crore loss recorded in the corresponding quarter a year earlier. Revenue declined 13.4% year-on-year to ₹792 crore from ₹915 crore.

The airline reported an operating loss of ₹297 crore during the quarter. It incurred ₹120 crore in carrying costs for its grounded fleet and another ₹30 crore towards expenses related to returning aircraft to service.

Its EBITDAR loss, excluding the foreign exchange impact, widened to ₹203.8 crore from ₹58.87 crore in the year-ago quarter.

SpiceJet attributed the weak performance to the impact of recalibrating dollar-denominated future obligations, costs associated with maintaining grounded aircraft and expenses incurred in bringing aircraft back into service. Continued airspace restrictions also weighed on operations and increased costs.

The passenger load factor stood at 84.3%, while passenger revenue per available seat kilometre improved to ₹4.04 from ₹3.91 in the corresponding quarter last year.

Stock performance

Shares of SpiceJet have staged a short-term recovery, gaining for three consecutive sessions, rising about 12.5% over the period. The stock has advanced in four of the past five trading sessions, gaining more than 14%.

The stock was trading about 5% higher at ₹8.67 on Friday. However, the recent gains have done little to reverse its steep losses, with the shares still down around 71% so far in 2026 and more than 76% over the past 12 months.