SpiceJet plans to raise $270 million after posting loss with many Boeing jets grounded

Indian carrier SpiceJet Ltd. reported a net loss of 4.32 billion rupees ($52 million) for the three months through September, ending a run of three-quarters of profits as more than a third of its planes were grounded.

Second-quarter revenue fell 27% from a year earlier to 14.3 billion rupees, while total costs fell by the same amount to 21.6 billion rupees, according to a filing from the airline on Tuesday. 

SpiceJet also announced plans to raise 22.5 billion rupees through preferential shares and warrants. The board approved issuing as many as 321 million shares at 50 rupees each to investors including Elara India Opportunities Fund, Aries Opportunities Fund, Mahapatra Universal Ltd., Nexus Global Fund, Prabhudas Lilladher and Resonance Opportunities Fund.

SpiceJet shares fell 3.3% to 58.59 rupees in Mumbai. 

The airline operates a fleet of mostly Boeing Co.’s 737 jets, 25 of which are grounded and another 40 operational. Its market share in India dropped to 5% in October from about 7% at the start of 2023, and its losses over the past five years amount to almost 55 billion rupees.

SpiceJet is entangled in a legal dispute with Credit Suisse Group AG over outstanding payments and was given another six months in September to clear its arrears of $3 million. 

In the three months through September, SpiceJet carried 1.59 million passengers, down 21% from the previous quarter, according to India’s aviation regulator.