SpiceJet's share price jumped more than 9 percent on Tuesday after the airline announced plans to induct 10 new aircraft into its fleet by the end of November, in continued turnaround efforts following a significant Rs 3,000-crore fundraising. At 11:06 am, the stock was trading at Rs 62.6, after hitting an intraday high of Rs 63 per share.

The fleet expansion, which includes seven leased aircraft and the reintroduction of three grounded planes, marks a significant step in SpiceJet's ongoing turnaround efforts. The airline confirmed that two of the leased planes have already arrived in India and will be inducted on 10 October, with the full complement of planes expected by mid-November.

"This addition is crucial as we continue to meet the growing demand for air travel while strengthening our operational capabilities," said Ajay Singh, Chairman and Managing Director of SpiceJet. "With the capital raised, SpiceJet is well-positioned to offer improved services and an expanded route network."

This expansion follows SpiceJet’s successful Qualified Institutional Placement (QIP), through which the airline raised Rs 3,000 crore in September. The QIP has been pivotal in the airline’s financial recovery, allowing it to clear substantial dues and support operational growth. SpiceJet attracted investment from top-tier institutions, including Goldman Sachs (Singapore), Morgan Stanley Asia, Tata Mutual Fund, and Discovery Global Opportunity Ltd in the QIP.

In addition to the capital raised through the QIP, the airline is set to receive Rs 736 crore from a previous funding round. This fresh capital has been crucial in SpiceJet's efforts to clear its outstanding Goods and Services Tax (GST) dues of Rs 71 crore and settle Rs 80 crore in pending salary arrears, spanning June to August 2024.

The company is also in the process of settling long-standing disputes. On 24 September, SpiceJet resolved a $16.7 million claim by Engine Lease Finance Corporation (ELFC) through an amicable settlement for an undisclosed lower amount. Additionally, it has reached settlements with multiple lessors, allowing for the return of grounded planes to service.

SpiceJet has seen a resurgence in its stock price, which has now delivered returns of over 80 percent in the last year, taking its market capitalization to nearly Rs 8,000 crore.

While the airline has made progress, it continues to face challenges, including a Rs 3,700 crore debt in the lessor, engineering, and statutory liabilities. However, the QIP has provided much-needed relief, setting SpiceJet on a path to restore operations to pre-2019 levels when it had 74 operational aircraft, compared to just 28 at present.

Earlier, in an investor presentation in September, the airline outlined its strategy for growth, which includes ungrounding 28 planes to double its current operational fleet of 28 aircraft. The airline is also eyeing exclusive regional and international destinations to boost revenue as part of its broader expansion plans.