SpiceJet Secures 10 Aircraft MoU, Targets Doubled Capacity in India

Indian carrier SpiceJet has received a Memorandum of Understanding (MoU) for the induction of 10 new aircraft, a key step in its strategy to significantly ramp up operations and capacity. The airline is targeting a fleet of 60 aircraft and aims to operate over 300 daily flights by the Winter 2026 schedule, signaling an aggressive push to regain market share in India's competitive aviation sector.

The expansion is part of a broader recovery plan for the airline, which has been working to stabilize its operations and finances. This move is designed to more than double the airline's capacity, measured in Available Seat Kilometres (ASKM), from its current levels. According to company data, SpiceJet's ASKMs already rose from approximately 55 crore to 105 crore in the last quarter. The airline now targets reaching 220-225 crore ASKMs by Winter 2026, reflecting a strong focus on growth.

Operational and Financial Performance

SpiceJet's strategy appears to be yielding results in operational metrics. The airline's domestic market share increased to 4.3% in December 2025, up from just 1.9% in September 2025, according to reports from The Economic Times. This growth was supported by an increase in the operational fleet, which stood at 35 aircraft as of November 2025. Daily flight operations also saw a significant jump from 100 in late September to 176 by mid-November 2025.

This operational expansion is occurring against a backdrop of financial challenges. For the third quarter of fiscal year 2026 (Q3 FY26), SpiceJet reported a consolidated net loss of ₹261.38 crore. However, revenue from operations showed strong quarter-on-quarter growth of 77%, reaching ₹1,384.31 crore. The airline also maintained a high Passenger Load Factor of 90% during the quarter, indicating strong demand on its operational routes.

Debojo Maharshi, Chief Business Officer at SpiceJet, commented on the progress. "Doubling our capacity in the last quarter has been a significant milestone, and the plans we have in place to more than double it further this year reflect growing confidence in the business and strong demand across the network," he stated. "The receipt of this MoU is an encouraging development as we continue to rebuild and expand our operations in a measured manner."

Industry Context and Strategy

SpiceJet's fleet expansion relies heavily on leasing agreements, including Wet Lease and Damp Lease arrangements. This strategy allows the carrier to quickly add capacity to meet demand without the immediate capital expenditure required for purchasing new aircraft. It is a common tactic used by airlines to navigate market fluctuations and recovery periods.

The airline's growth aligns with broader trends in the Indian aviation market, which is the world's third-largest domestically and is projected to see passenger traffic rise by 7-10% in FY26. This expansion is supported by national infrastructure development, with India's airport network growing from 74 in 2014 to 162 as of September 2025. The regulatory environment is overseen by the Directorate General of Civil Aviation (DGCA), which manages safety and operational standards for all Indian carriers.

What Comes Next

The MoU represents a formal step towards acquiring the 10 aircraft, but the final induction is subject to definitive lease agreements and regulatory approvals from the DGCA. The airline's immediate focus will be on integrating these aircraft into its network to achieve its target of over 300 daily flights by the end of the year. Continued monitoring of its financial performance will be crucial as it balances the costs of rapid expansion with revenue generation.

Why This Matters

In my view, SpiceJet's aggressive capacity expansion is a high-stakes bet on the sustained growth of the Indian domestic market. The airline is leveraging leasing to rapidly rebuild its network and capture market share, a strategy that prioritizes operational scale. The critical question remains whether this growth can translate into sustainable profitability, a challenge that has persistently faced the carrier. For competitors, lessors, and the Indian aviation ecosystem, SpiceJet's turnaround attempt is a key storyline to watch, as its success or failure will have significant ripple effects across the market.

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