SpiceJet plans to raise $270m after posting loss with many Boeing jets grounded

Indian carrier SpiceJet Ltd. reported a net loss of 4.32b rupees ($52m) for the three months through September, ending a run of three-quarters of profits as more than a third of its planes were grounded. Q2 revenue fell 27% from a year earlier to 14.3b rupees, while total costs fell by the same amount to 21.6b rupees, according to a filing from the airline on Tuesday. SpiceJet also announced plans to raise 22.5b rupees through preferential shares and warrants. The board approved issuing as many as 321m shares at 50 rupees each to investors including Elara India Opportunities Fund, Aries Opportunities Fund, Mahapatra Universal Ltd., Nexus Global Fund, Prabhudas Lilladher and Resonance Opportunities Fund. The airline operates a fleet of mostly Boeing Co.’s 737 jets, 25 of which are grounded and another 40 operational. Its market share in India dropped to 5% in October from about 7% at the start of 2023, and its losses over the past five years amount to almost 55b rupees. SpiceJet is entangled in a legal dispute with Credit Suisse Group AG over outstanding payments and was given another six months in September to clear its arrears of $3m. In the three months through September, SpiceJet carried 1.59m passengers, down 21% from the previous quarter, according to India’s aviation regulator.<br/>