SpiceJet Surges 5% on Addition of New Flights

SpiceJet shares surged nearly 5 per cent on Tuesday after the budget carrier announced new flights from October as part of its winter schedule.

SpiceJet will to enhance its air connectivity on several trunk routes, including Delhi and Mumbai, and launch a new flight service between Goa and Ahmedabad.

The winter schedule of the airlines in India comes into effect from last Sunday of October.

The airline has also increased flights between Delhi and Ahmedabad. "We will continue to add new flights in the days to come," SpiceJet senior vice president and head of sales and distribution Shilpa Bhatia said.

SpiceJet has less than 20 Boeing narrow-body jets, while its market share has shrunk to 12 per cent in June from around 20 per cent a year ago after it cut capacity to stay in business.

SpiceJet had earlier said that it is in talks with Boeing and Airbus Group to acquire about 100 new narrow-body jets, in a deal that would be worth about $11 billion, or nearly Rs 70,000 crore, at list prices.

SpiceJet's expansion plans come after India's second-largest low-cost carrier almost collapsed, before being bailed out by new chairman Ajay Singh in January.

The outlook for Indian aviation sector has improved significantly after a slump in oil prices, which account for almost 40 per cent of the airlines' operating cost in India.

SpiceJet on Tuesday reported a net profit of Rs 71.8 crore for the June quarter, a big turnaround from the net loss of Rs 124 crore it recorded in the same quarter of last year.

Meanwhile, India's biggest listed carrier Jet Airways also swung to a profit in the June quarter.

The passenger growth has also seen strong growth. The number of passengers carried by domestic airlines during January-June this year rose to 388 lakh, as against 324 lakh during the corresponding period of previous year - an increase of nearly 20 per cent.

At 11:16 a.m., SpiceJet shares were up 1.3 per cent to 27.30 while Jet Airways rose 1.8 per cent to Rs 386. In comparison, the Sensex was up nearly 0.25 per cent. (With Agency Inputs)