SpiceJet shares climb 3% as airline renews IOSA certification

Shares of SpiceJet Ltd on Friday rose 2.83 per cent to hit a high of Rs 46.46 after the budget carrier renewed its IATA Operational Safety Audit (IOSA) certification, a global benchmark for operational safety. "This achievement reaffirms SpiceJet's unwavering commitment to maintaining the highest safety and operational standards. The successful renewal of the IOSA certification is valid until March 2027," the airline stated in an exchange filing.

"The IOSA audit, conducted by the International Air Transport Association (IATA), is a rigorous, internationally accepted evaluation of an airline's operational management and control systems. SpiceJet underwent the comprehensive audit in two phases – a remote documentation audit, followed by an on-site assessment conducted from December 9 to 12, 2024. A team of five international auditors conducted in-depth checks of the airline’s processes, emergency response procedures, and risk-based maturity framework," SpiceJet also said.

SpiceJet has recently settled its dispute with Willis Lease Finance Corporation (global aircraft engine lessor), resulting in a substantial saving for the airline. This settlement follows a series of strategic agreements SpiceJet has secured in recent months, backed by a Rs 3,000 crore infusion through a qualified institutional placement (QIP) in September 2024 and an additional Rs 294.09 crore infusion by promoter Ajay Singh.

On BSE, around 21.63 lakh SpiceJet shares were last seen changing hands. The figure was lower than the two-week average volume of 1.27 crore shares. Turnover on the counter came at Rs 10.05 crore, commanding a market capitalisation (m-cap) of Rs 5,884.33 crore.

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 46.36. 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 39.96 against a price-to-book (P/B) value of 139.24. Earnings per share (EPS) stood at (-)1.15 with a return on equity (RoE) of (-)350.81. According to Trendlyne data, SpiceJet has a one-year beta of 1.4, indicating high volatility.

As of December 2024, promoters held a 29.13 per cent stake in the airline.