SpiceJet rises 3% post new plane orders, air traffic trends
Airline signed MoU for 40 737 MAX airplanes for around USD 4.7 billion; the airline also posted highest seat occupancy for May.
SpiceJet added nearly 3 percent intraday on Tuesday as investors cheered its new plane orders.
The low cost carrier signed a memorandum of understanding (MoU) for 40 737 MAX airplanes, valuing the total deal at USD 4.7 billion.
The agreement is split evenly between 20 new orders for 737 MAX 10 and conversions of 20 of the low-cost carrier’s 737 MAX 8 airplanes of its current order to 737 MAX 10s, the airline said in an exchange notification.
The carrier will be taking the first delivery of the first 737 in 2018.
SpiceJet operates a fleet of 35 Next-Generation 737s and 19 Bombardier Q400s. The carrier plans to grow its operational fleet to 100 airplanes by 2020 and looks to expand regionally with the new 737 MAX family of airplanes.
In related news, the airline also continued with its highest seat occupancy, registering 94.4 percent load factor during the reporting month.
Recently, the airline made a debut in the retail segment with the launch of its ecommerce portal called SpiceStyle, which is expected to boost the ancillary business of the company.
Ajay Singh, CMD, Spicejet said in an effort to increase the ancillary revenues, the company has tied up with Amazon. The company also plans to partner with other market places besides Amazon to sell their merchandise and add to the ancillary revenues.At 11:03 hrs, SpiceJet was quoting at Rs 127.10, up Rs 2.55, or 2.05 percent. It touched a 52-week high of Rs 128.20.