SpiceJet shares rise after $89.5 million liquidity boost from Carlyle settlement

SpiceJet’s share price gained more than 5% in intraday trade on the Bombay Stock Exchange (BSE) on Thursday, September 11, after the airline announced that it had secured $89.5 million through a settlement with Carlyle Aviation Partners.

The stock opened at INR 33.49, compared to the previous close of INR 33.06, and rose as much as 5.4% to an intraday high of INR 34.85. By 10.25 am, it had trimmed some gains but was still up 2.24% at INR33.80. In contrast, the broader market was quiet, with the benchmark Sensex trading flat at 81,415.

SpiceJet said the agreement with Carlyle would release $79.6 million in cash maintenance reserves that can be used for aircraft and engine upkeep, along with $9.9 million in maintenance credits to reduce lease obligations. The airline explained that this would significantly improve liquidity, cut liabilities, and strengthen its financial position.

Ajay Singh, Chairman and Managing Director of SpiceJet, described the settlement as “a significant milestone in our ongoing restructuring and ungrounding efforts.” He added that Carlyle’s support reflects confidence in SpiceJet’s long-term business prospects.

As part of the settlement, certain lease obligations worth $121.18 million will be restructured. SpiceJet will also issue $50 million worth of equity shares to Carlyle and its affiliates. The agreement includes a clause that if Carlyle earns more than $50 million from selling these shares in the future, part of the extra proceeds will be used to offset SpiceJet’s upcoming lease payments.

Despite this positive development, SpiceJet continues to face financial pressure. The airline recently reported a consolidated net loss of INR 234 crore for the April-June quarter of FY26, compared to a net profit in the same quarter last year.

On the stock market, SpiceJet has been under pressure for months. The shares have declined for six straight sessions and are down 10% so far in September. Year-to-date (till September 10), the stock has fallen more than 40%. It hit a 52-week low of INR 31.25 on August 11, far below its 52-week high of INR 79.90 reached on September 16 last year.