SpiceJet has received its second credit rating upgrade within a month, showing that the airline’s financial health and liquidity have improved. Acuité Ratings & Research has raised SpiceJet’s long-term credit rating to BB (Stable) from BB- (Stable), while keeping its short-term rating at A4+.

The upgrade comes after the airline shared more details on its revival plans, which include adding new leased aircraft, nearly tripling its daily flights to 280, and bringing back grounded planes. SpiceJet also recently settled its dispute with Carlyle Aviation Partners, a major lessor. This deal is expected to improve cash flow for aircraft and engine maintenance and reduce lease debt by converting part of it into company ownership.

Acuité said that the airline’s stronger operational plans, improved liquidity, and agreements with key lessors were the main reasons behind the rating boost.

SpiceJet’s leadership was also praised, especially Chairman and Managing Director Ajay Singh, who has over 15 years of experience in the aviation sector and is known for turning around the airline in the past.

Debojo Maharshi, Chief Business Officer of SpiceJet, said, “The consecutive upgrades in our credit ratings show our efforts to build a stronger financial base and prepare for long-term growth. With new aircraft, restructured agreements, and a focus on expansion and profitability, we are confident about improving operations and customer experience.”

The rating agency added that SpiceJet’s growing fleet and multiple revenue sources are likely to support its earnings in the near future.