SpiceJet shares surged 5.5% in early trade on September 9 following the announcement of a restructuring deal with Carlyle Aviation.

As part of the agreement, SpiceJet will issue shares to Carlyle Aviation, converting a portion of its dues into equity.

This move will reduce SpiceJet's outstanding dues from $137.68 million to $97.51 million, with $40 million of Carlyle Aviation’s debt being converted into equity. By 09:35 AM, SpiceJet's shares were trading at Rs 64.18 on the NSE.

In addition to the restructuring deal, reports suggest that SpiceJet's promoter and chairman, Ajay Singh, may sell over 10% of his stake in the airline, with the potential for up to a 15% stake sale if market conditions remain favorable.

Singh currently holds a 37.57% stake in the company, and the stake sale is expected to be part of a new round of funding aimed at helping the airline meet its financial obligations.

The funds from the stake sale and restructuring will reportedly be used to bring grounded aircraft back into service, settle liabilities, and support fleet expansion.

SpiceJet has been facing financial difficulties and legal challenges, which have led to the grounding of 36 aircraft. As a result, the airline’s fleet size has decreased from 74 aircraft in 2019 to just 28 in 2024.

Despite these challenges, SpiceJet remains optimistic about its future. The airline’s recently released annual report outlines its plans for fleet expansion and the ungrounding of aircraft.

It also highlights the airline’s focus on gaining exclusive access to both regional and international destinations. The company aims to unground 28 of its aircraft, which would effectively double its operational capacity and help it recover from its current financial strain.

As the airline works toward fleet expansion and raising funds, it hopes to overcome the financial hurdles that have plagued its operations in recent years and chart a path toward a more stable and promising future.