SpiceJet Board to meet again on 27 Feb to mull fund raising

“This is to inform you that the Board Meeting scheduled on February 24, 2023 (Friday) to consider and approve, inter-alia, following items has been adjourned to February 27, 2023 (Monday),” the airline said in a regulatory filing.

SpiceJet’s Board will also discuss issuance of equity shares on a preferential basis for conversion of outstanding liabilities into equity shares of the company.

For the third quarter ended 31 December, 2022, SpiceJet’s passenger revenue surged 33% as yields, a proxy for airfares, rose 21 per cent.

That helped offset a sharp decline in revenue from its freight and logistics business. Overall revenue was up 2 per cent at ₹2,317 crore.

“There are renewed signs of recovery and some very positive developments and restructuring initiatives in the immediate offing that would significantly strengthen and de-leverage our balance sheet,” Ajay Singh, chairman and managing director, said in a statement.

Profit rose to ₹110 crore for the quarter under review. The results come as the cash-strapped airline looks to raise capital with competition heating up in the industry.

Last year, SpiceJet suffered a string of mid-air safety lapses that drove the aviation regulator to halve its approved fleet in July 2022. The curb was removed on 30 October.

Meanwhile, shares of SpiceJet surged over 12 per cent after the company reported a higher net profit of ₹110 crore in the three months ended December last year.

The stock jumped 12.31 per cent to settle at ₹39.70 per piece on the BSE on Friday. During the day, it rallied 15.27 per cent to ₹40.75.

In volume terms, 25.44 lakh shares were traded on the BSE during the day.