SpiceJet Shares Soar as IndiGo’s Operational Crisis Shifts Investor Attention
SpiceJet shares rallied sharply for the second straight session on December 8, climbing over 14% intraday as investors reacted positively to the airline’s fleet expansion plans and the market turmoil triggered by IndiGo’s mass flight cancellations. The stock touched a high of ₹35.50 per share, marking a 17% gain in just two sessions, even as volatility continues to grip India’s aviation sector.
The surge comes at a time when IndiGo struggles to stabilise operations amid regulatory scrutiny, creating a temporary sentiment shift in favour of smaller players such as SpiceJet.
Fleet Expansion Plans Fuel Optimism as SpiceJet Prepares for Stronger Network Presence
SpiceJet’s renewed investor interest is closely tied to its fleet expansion roadmap, outlined in its November investor presentation. The airline highlighted its ambition to double its operational fleet by year-end and significantly expand capacity into 2026.
The operational fleet had slipped from 21 aircraft in June to 19 in September, prompting the airline to accelerate plans to re-induct grounded aircraft.
According to the company:
Up to eight grounded Boeing aircraft will be restored by April 2026
Two aircraft have already rejoined the fleet
Two more are scheduled for induction by December 2025
The remaining four will return by early summer 2026
SpiceJet further stated that it aims to triple its Available Seat Kilometres (ASKM) by end-2025, marking a transformational phase in its growth journey.
For investors, this signals a potential turnaround in the airline’s operational scale, especially at a time when its largest competitor faces unprecedented disruptions.
Also Read : IndiGo Falls 10% as New FDTL Norms Disrupt Operations and Lift Cost Estimates, Brokerages Note
IndiGo’s Crisis Creates Market Opportunity as Cancellations Exceed 2,000 Flights
The movement in aviation stocks is closely linked to the turmoil at IndiGo, which continues to dominate industry headlines. With over 2,000 flight cancellations in just six days, the airline has caused significant travel disruptions nationwide. Delhi Airport issued a public advisory warning of unstable schedules, further amplifying passenger concerns.
The DGCA issued a show-cause notice to IndiGo CEO Pieter Elbers, citing:
Lapses in operational planning
Weak oversight
Failure to prepare for the revised FDTL norms
The revised Flight Duty Time Limitations require longer rest hours and more humane rosters for pilots. However, IndiGo’s crew shortage, combined with immediate compliance requirements, created a cascading operational breakdown.
For markets, this instability has temporarily shifted sentiment, with some investors betting on relative stability and growth prospects in SpiceJet.
Government Points to Planning Gaps at IndiGo While Supporting Industry Expansion
Addressing the Rajya Sabha, Union Civil Aviation Minister Ram Mohan Naidu Kinjarapu stated that the crisis stemmed from IndiGo’s internal planning and rostering system. He emphasised that Civil Aviation Requirements (CARs) continue to protect passengers and highlighted the government’s intention to encourage more airlines in India.
He added, “India has a capacity for five big airlines, and we want more players to enter the sector.”
The minister’s comments reinforce the view that while regulatory standards around safety and crew welfare will remain strict, operational efficiency must come from airlines themselves.
SpiceJet’s Share Price Recovery Gains Momentum Despite Weak Long-Term Chart
Despite the recent surge, SpiceJet’s stock performance over the longer term reflects the challenges faced by the airline:
Up 2% in the past five days
Down 3% over the past one month
Down 23% in the last six months
Down 41% in 2025 so far
Its consolidated P/E ratio stands above 10, reflecting moderate valuations relative to peers but also the financial stress the airline has endured over recent years.
However, the current rally illustrates how sectoral sentiment shifts—triggered by IndiGo’s instability—can lead to short-term gains for competitors positioning themselves for operational expansion.
SpiceJet’s Expansion Strategy Aligns With Rising Travel Demand and Sector Rebalancing
With Indian aviation witnessing strong passenger traffic growth, SpiceJet’s strategy to expand its operational fleet and restore grounded aircraft comes at an opportune moment. As travel demand continues to rise and market share gaps widen due to IndiGo’s temporary weakness, SpiceJet’s plans could help it regain competitive ground.
The airline’s move to ramp up capacity is seen as a decisive step in rebuilding market confidence, especially as the industry adapts to new regulatory norms and evolving travel patterns.
Short-Term Gains Reflect Market Dynamics, but Long-Term Execution Will Determine SpiceJet’s Trajectory
While the sharp rise in SpiceJet’s share price underscores investor optimism, analysts caution that sustained recovery will depend on execution, financial discipline, and ongoing fleet induction. The broader aviation sector remains sensitive to regulatory changes, fuel price volatility, and operational reliability—factors that will shape both SpiceJet’s and IndiGo’s trajectories in the coming quarters.
For now, the market rally highlights how quickly sentiment can shift when disruptions hit industry leaders and competitors demonstrate readiness to scale.
