SpiceJet shares jump 10% today: Here's why the airline stock is rising; still down 59% YTD

Shares of SpiceJet Ltd continued to rise for the fourth consecutive session on Thursday, surging 10 per cent to hit a high of Rs 12.32. Despite the recent gains, the airline stock remains down 58.78 per cent on a year-to-date (YTD) basis.

Today's sharp upmove came after the low-cost airline, which is undergoing operational and financial headwinds, announced the induction of three Airbus A320 aircraft into its fleet under damp lease arrangements.

It added that all three aircraft have arrived in India and will commence commercial operations later this week.

"The additional aircraft will support the airline's network expansion plans and enable it to enhance connectivity across key domestic routes. The aircraft have been inducted on a damp lease basis, providing greater operational flexibility while delivering significant cost efficiencies," the airline said.

The carrier also said it is in advanced discussions with other lessors to induct additional aircraft in the coming months as part of its planned fleet augmentation programme.

Debojo Maharshi, Chief Business Officer at SpiceJet, said, "The induction of these three aircraft is part of our planned capacity expansion. As demand continues to grow, these aircraft will help us add more flights on existing routes, improve connectivity and support the launch of new services. We are steadily building capacity ahead of the busy travel season and remain focused on offering our passengers a wider choice of destinations and a reliable travel experience."

Despite Thursday's sharp upmove, a few market experts remained largely cautious on the airline's stock.

Ravi Singh, Chief Research Officer at Master Capital Services, said, "SpiceJet is going through a really rough patch right now. They are facing hurdles from lawsuits, cash shortages, and a large number of grounded planes. While they keep dodging bankruptcy by raising fresh funds and striking last-minute deals with leasing companies, their actual day-to-day flying operations are struggling. If we look at the technical charts, it trades very much like a highly volatile penny stock."

Echoing a similar view, Kranthi Bathini, Equity Strategist at WealthMills Securities, said the stock is suitable only for investors with a high-risk appetite.