SpiceJet to Consider Fresh Capital Raise as Shares Jump 5%
Struggling Indian carrier SpiceJet said its board will meet on November 18 to weigh a fresh capital raise through equity, preference shares or other instruments. Shares rose 5% on Friday even as cancellations, unpaid dues and heavy losses weigh on the airline.
SpiceJet Ltd., the struggling Indian airline, said on Friday, November 13, that its board will consider fresh capital through equity shares, preference shares and other permissible instruments. Its shares rose 5% on the news.
The board meets on Wednesday, November 18. It will weigh a proposal to raise money through a preferential issue, a qualified institutions placement or any other route it considers appropriate.
A preferential issue sells new shares to selected investors. A qualified institutions placement sells shares to large institutional buyers. The raise could also include debt securities, subject to applicable laws, shareholder approvals and regulatory permissions, the airline said. Local media reports put the size of the proposed raise at ₹5,000 crore.
SpiceJet also said its trading window for dealing in company securities will stay closed until further notice.
Shares still deeply down
The stock has gained for three straight sessions and is higher in four of the past five. It remains weak over the longer run, down around 71% so far in 2026 and more than 76% over the past 12 months.
Cancellations and unpaid dues
The airline is cancelling around 15-20 flights daily despite operating roughly 65 scheduled services, according to reports. Sources earlier said that its operational fleet has shrunk to 12 aircraft, with three grounded over pending payments to lessors.
Mounting dues to aircraft lessors, oil companies, airport operators and ground-handling agencies are behind the disruption. SpiceJet is also operating on a cash-and-carry basis, paying upfront for critical services. Sources indicate salaries have gone unpaid since June 2026.
On November 12, ground-handling company dnata suspended check-in services for SpiceJet at Dubai International Airport over unpaid dues. Four flights from Dubai were cancelled and only two were allowed to operate.
The dispute involved about 14 million UAE dirhams (roughly ₹35.8 crore) owed to Dubai Airports. The operator had reportedly warned SpiceJet on November 9 that check-in would stop from November 12 if the dues were not cleared.
The Dubai Civil Aviation Authority summoned the airline's station manager. It told SpiceJet to inform affected passengers and arrange alternative flights, accommodation and transport. A SpiceJet spokesperson said the airline was working with the authorities and had adequate bank guarantee cover in place.
Losses widen
In the September quarter of FY26, SpiceJet posted a net loss of ₹621 crore, wider than the ₹458 crore loss a year earlier. Revenue fell 13.4% year on year to ₹792 crore from ₹915 crore.
The operating loss was ₹297 crore. That included ₹120 crore in carrying costs for the grounded fleet and ₹30 crore for returning aircraft to service. EBITDAR loss, excluding foreign exchange effects, widened to ₹203.8 crore from ₹58.87 crore.
SpiceJet blamed the recalibration of dollar-denominated future obligations, grounded-aircraft costs and the expense of bringing planes back into service. Continued airspace restrictions also raised costs, it said.
