SpiceJet shares rally 5% as airline secures $89.5 million cash flow boost via Carlyle deal

The agreement significantly enhances SpiceJet’s liquidity and supports its ongoing restructuring efforts.

“These liquidity enhancements are part of an overall settlement agreement with Carlyle Aviation Partners and its affiliated entities, under which the lessors shall restructure certain lease obligations totalling US$121.18 million in conjunction with the issuance of equity shares aggregating to US$50 million,” SpiceJet said in a regulatory filing.

The budget airline further explained that the settlement agreement includes a provision whereby, if the lessors realise proceeds exceeding US$50 million from the sale of the issued shares, a portion of the excess will be used to offset future lease obligations.

The promoter (or its designated assignee) will have the option to purchase such equity shares on mutually agreed terms upon the expiry of the statutory lock-in period, as well as any additional lock-in period agreed contractually between the parties.

Commenting on the development, Ajay Singh, Chairman & Managing Director, SpiceJet, said, “This agreement marks a significant milestone in our ongoing restructuring and ungrounding efforts. The support extended by Carlyle demonstrates their confidence in SpiceJet’s long‐term prospects. This transaction meaningfully reduces our liabilities, strengthens our balance sheet, and positions us well for sustainable growth.”

At 11:20 AM, shares of SpiceJet were trading at ₹33.89 on BSE, gaining 2.51%. In the last six months, the stock has gained 7%, while year-to-date, it has lost over 40%.

Last week, SpiceJet had reported a consolidated net loss of ₹233.85 crore for the April-June quarter of financial year 2026, as compared to the ₹158.3 crore net profit seen in the same period last fiscal year.

The airline’s total revenue from operations stood at ₹1,120.2 crore in Q1 FY26 as against ₹1,708.2 crore in Q1 FY25, marking a fall of 34.4% on a year-on-year basis.

The company, which had been facing multiple headwinds, raked in a total income of ₹1,190.56 crore in the reporting quarter in contrast to ₹2,067.21 crore in the same period last year, according to a regulatory filing.

In a statement, SpiceJet said the results were significantly impacted by the geopolitical situation with a neighbouring country and airspace restrictions in key markets, which led to subdued leisure travel demand.