SpiceJet Targets 60-Aircraft Fleet Amid Indian Market Share Gains

Indian carrier SpiceJet has announced plans to significantly ramp up its fleet to approximately 60 aircraft as part of a strategy to reclaim market share and expand its operational capacity. The airline will achieve this growth through a combination of wet and damp leases, alongside a phased reactivation of its existing grounded aircraft. This SpiceJet fleet expansion initiative follows a period of notable growth for the airline in the highly competitive Indian domestic market.

The airline's recovery efforts have already shown results, with its domestic market share increasing from 1.9% in September to 4.3% in December. According to a press release distributed by the Press Trust of India (PTI), this gain was driven by a 56% expansion in capacity during the December quarter. The operational metric for this growth, Available Seat Kilometres (ASKs), a standard industry measure of passenger carrying capacity, nearly doubled from approximately 55 crore to 105 crore during this period.

Capacity Goals and Leasing Strategy

SpiceJet has set an ambitious target to more than double its current capacity, aiming for 220 crore (2.2 billion) ASKs by the Winter 2026 season. Central to this plan is the use of flexible aircraft leasing arrangements. A wet lease is an agreement where the lessor provides the aircraft, crew, maintenance, and insurance (ACMI). A damp lease is similar, but the lessee airline provides its own cabin crew. These strategies allow airlines to rapidly add capacity to meet demand without the long-term capital commitment of purchasing new aircraft. Further supporting this growth, SpiceJet confirmed it has received a Memorandum of Understanding (MoU) for the induction of 10 aircraft.

Debojo Maharshi, Chief Business Officer of SpiceJet, commented on the airline's progress. “The sharp rise in our market share over a short period reflects the progress we have made in rebuilding capacity and restoring our network,” Maharshi stated. “Doubling capacity in the last quarter and expanding our fleet during Q3 have helped us regain presence across key routes. As we work towards more than doubling our capacity this year, our focus remains on strengthening connectivity, improving reliability, and scaling up in a measured and sustainable manner.”

Market Context and Financial Headwinds

The airline's strategy to utilize wet and damp leases is a common industry practice for rapid capacity adjustments, particularly useful for covering seasonal peaks or operational gaps caused by grounded aircraft. The challenge of grounded fleets is a persistent issue within the Indian aviation sector, affecting several carriers due to supply chain disruptions and financial pressures.

Despite the positive operational momentum, SpiceJet's financial health remains a significant consideration. The airline's growth plans are set against a backdrop of financial challenges. According to public financial filings, SpiceJet reported a consolidated net loss of ₹261.38 crore for the third quarter of fiscal year 2026. The company also has deeply negative shareholder equity, which raises questions from analysts about the long-term sustainability of its ambitious expansion. The success of its operational recovery will be closely tied to its ability to manage its financial obligations and secure stable funding for its growth.

Path to 300 Daily Flights

Looking ahead, SpiceJet aims to leverage its expanded fleet to operate over 300 daily flights by Winter 2026. This would represent a substantial increase in its network footprint and a significant step toward re-establishing itself as a major player in India's domestic aviation landscape. The phased return of its grounded aircraft will be critical to achieving this target, alongside the successful integration of leased capacity into its network. The airline has not disclosed a specific timeline for the return-to-service of its grounded planes, which will likely depend on maintenance schedules and regulatory approvals.

Why This Matters

This aggressive fleet and capacity expansion signals SpiceJet's determined effort to recover from a period of operational and financial difficulty. For the Indian aviation market, it intensifies competition among low-cost carriers. The success of this strategy will depend heavily on the airline's ability to balance rapid growth with financial discipline, a key indicator for the health of the broader Indian airline industry.

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