SpiceJet set to re-induct first grounded Boeing 737 MAX aircraft on January 29, shares jump 3%

SpiceJet

SpiceJet on January 28 announced that it is set to re-induct its first ungrounded Boeing 737 MAX aircraft into operations on January 29. The shares of the company were trading nearly 3 percent higher after the announcement.

In a press release, the company said that after several months of being grounded, the aircraft's "return marks a significant milestone in the airline's fleet restoration and operational enhancement efforts." The airline said it has entered into services agreements with US-based Standard Aero and CFM International to facilitate the restoration of the MAX fleet.

Earlier on January 10, the company had announced that it will unground 10 aircraft by the middle of April 2025. This would include four Boeing 737 MAX planes and will increase the airline's current fleet size of 28 planes. Notably, the first of the four Boeing 737 MAX planes is set to be re-inducted on January 29, as per the latest release.

"The addition of the MAX aircraft will enable SpiceJet to operate to high-demand markets such as Jeddah and Riyadh without any operational restrictions. The induction of these fuel-efficient planes will result in significant cost savings due to the MAX's reduced fuel consumption, lower maintenance requirements, and higher aircraft utilization, all of which will contribute to further optimizing the airline’s operations," SpiceJet said in its release.

Commenting on the latest announcement, SpiceJet Chairman and MD Ajay Singh said, "The re-induction of our first grounded Boeing 737 MAX aircraft is a moment of immense pride and an important milestone for SpiceJet. It underscores our unwavering commitment to restoring and enhancing our fleet’s operational capacity. As we move forward, we remain focused on scaling new heights, offering exceptional service, and driving sustainable growth for our passengers and stakeholders."

The airline has been on track of recovery, settling long standing dues and disputes with several of its lessors.

The shares of the airline jumped nearly 6 percent to hit an intraday high of Rs 46.90. The shares however pared some gains and were trading at Rs 43.95 (0.18% higher) at 11.28 am.