SpiceJet shares jump 6% today; here's the reason behind rally in airline stock

Shares of SpiceJet climbed 6 per cent in Friday's trade amid reports the company was looking to induct 10 Boeing 737 aircraft into its fleet from September. The stock also gained as the airline partnered with FTAI Aviation, a leading aftermarket provider of engine services, on a CFM56 revitalization program.

The stock rose 5.58 per cent to hit a high of Rs 29.50 on BSE. As per a report, The airline has already signed a lease agreement for the ten planes which will start joining the fleet from September 2023.

May’s passenger traffic stood at 1.32 crore passenger traffics, up 2.4 per cent month on month basis, representing a level higher than pre-Covid levels, analysts noted. In April, passenger traffic had risen 1 per cent MoM to 1.29 crore. JM Financial said the aviation sector remains well placed given tailwinds of significantly higher airfare (up 20 per cent QoQ) post suspension of flights by GoFirst, sharper recent demand comeback (up 5 per cent QoQ), lower crude (down 13.7 per cent QoQ) and a stable rupee.

SpiceJet's Chairman and Managing Director at Ajay Singh said, “SpiceJet is slowly but surely progressing towards its goal of restoring its fleet and ensuring that our aircraft stay where they rightly belong to i.e. in the skies serving our passengers. Our partnership with FTAI Aviation is a step forward in that direction that would ensure that our fleet is up and running at all times without us worrying about engines or their maintenance."

"Quick and ready replacements will ensure that our planes are on the ground for minimal time.”

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