SpiceJet jumps 10 per cent; takes off with a special announcement!
This will result in additional liquidity for the airline.
Lately, Spice Jet has been the talk of the town as the regulatory body in the field of civil aviation i.e. Directorate General of Civil Aviation (DGCA) ordered to operate a maximum of 50 per cent of its total flights. This was done following at least eight incidents of technical malfunction and an unusually higher number of safety incidents in its plane in 18 days since June 19.
Since then, its stock prices crashed nearly 18 per cent from the high of June 20, 2022, and made a low of Rs 34.75. However, here comes some relief for the shareholders of SpiceJet as its stock price has rebounded sharply from the lower levels and soared 10 per cent on Tuesday.
In a press release, the company has clarified that it has entered into a full & final settlement with Airports Authority of India (AAI) and also, cleared all outstanding principal dues of the airport operator.
With this, SpiceJet will no longer remain on ‘cash and carry’ at AAI-run airports across the country; instead, revert to advance payment mechanisms for daily flight operations. Its ability to clear the pending dues reflects the airline’s improved cash flow in recent times.
In another big boost for the airline, AAI will release SpiceJet’s Rs 50 crore bank guarantee, following the airline clearing all its principal dues. This will result in additional liquidity for the airline. SpiceJet has flown with the highest passenger load factor in the Indian skies for a record seven years. Starting April 2015, SpiceJet has recorded the highest occupancy among all Indian domestic airlines, a feat unparalleled in global aviation. The airline also holds the envious distinction of having flown with a passenger load factor (PLF) of more than 90 per cent for a record 58 consecutive months.
The stock has jumped over 15 per cent on a WTD basis and is trading above Rs 44.