Budget carrier SpiceJet Ltd on Tuesday said it would re-induct its first ungrounded Boeing 737 MAX aircraft into operations, starting January 29, 2025. "Grounded for several months, the aircraft's return marks a significant milestone in the airline’s fleet restoration and operational enhancement efforts. To facilitate the restoration of its MAX fleet, SpiceJet recently entered into services agreements with StandardAero Inc., a leading US-based engine maintenance, repair, and overhaul (MRO) provider, and CFM International Inc, the original equipment manufacturer (OEM) for LEAP-1B engines," the airline stated in a release.
Under its ongoing fleet restoration plan, the airline aims to bring 10 aircraft, including four Boeing 737 MAX planes, back into service by mid-April 2025. This would be the first 737 MAX aircraft to be brought back under the exercise.
"The addition of the MAX aircraft will enable SpiceJet to operate in high-demand markets such as Jeddah and Riyadh without any operational restrictions. The induction of these fuel-efficient planes will result in significant cost savings due to the MAX's reduced fuel consumption, lower maintenance requirements, and higher aircraft utilization, all of which will contribute to further optimizing the airline’s operations," the airline also said.
Ajay Singh, Chairman and Managing Director at SpiceJet, said, "The re-induction of our first grounded Boeing 737 MAX aircraft is a moment of immense pride and an important milestone for SpiceJet. It underscores our unwavering commitment to restoring and enhancing our fleet's operational capacity. As we move forward, we remain focused on scaling new heights, offering exceptional service, and driving sustainable growth for our passengers and stakeholders."
Since October 2024, SpiceJet has added 10 aircraft to its fleet, including three previously grounded planes and seven newly leased aircraft.
On the stock-specific front, the stock climbed 6.91 per cent to hit a high of Rs 46.90. At this value, it has moved up 7.54 per cent from its recent 52-week low of Rs 43.61, seen in the previous session.
Technically, the scrip traded lower than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 32.72. A level below 30 is defined as oversold while a value above 70 is considered overbought.
As per BSE, the stock has a negative price-to-equity (P/E) ratio of 12.12 against a price-to-book (P/B) value of (-)2.17. Earnings per share (EPS) stood at (-)3.62 with a return on equity (RoE) of 17.95. Promoters held a 29.13 per cent stake in SpiceJet during the December 2024 quarter.
The scrip saw high trading volume on BSE today as around 71.60 lakh shares changed hands at the time of writing this story. The figure was higher than the two-week average volume of 42.45 lakh shares. Turnover on the counter came at Rs 32.68 crore, commanding a market capitalisation (m-cap) of Rs 5,826.54 crore.