SpiceJet has achieved a significant financial milestone with Acuité Ratings & Research upgrading its long-term credit rating to BB- (Stable) and short-term rating to A4+. The upgrade reflects the airline's strengthened financial position, improved business outlook, and sustained efforts toward operational resilience.
This upgrade builds on the strong momentum in SpiceJet's credit profile. In November 2024, Acuité had raised the airline's rating by four notches to B+ (Stable) along with a short-term rating of A4. This was followed in January 2025 by CareEdge Ratings assigning a BB- (Stable) rating, marking SpiceJet's second upgrade within just three months.
Acuité, in its latest upgrade, highlighted, “The upgrade in the rating reflects the significant new infusion of funds from key promoter company in March 2025 into the airline which occurred after the QIP (Qualified Institutional Placement) in September 2024 providing additional liquidity cushion and which will be helping in improving overall operations.”
“The rating also supported by improvement in scale of operations & profitability, unutilized funds of
Rs. 300 Cr. from last fund raising round (QIP) as on 31st March 2025 and reduction in the aircraft lease liabilities (operational creditors) settled through negotiations with the lessors.”
“Acuité notes that the new order for fresh fleet under wet lease structure has been given to increase the existing fleet size will benefit the airline in near to medium term. The timely delivery of these new aircraft will be key monitorable. These strengths are balanced by the challenges of operating in a highly competitive and regulated industry, weak financial risk profile and susceptible to volatile fuel prices and foreign exchange risks,” it added.
Elaborating on the key rating drivers, Acuité highlighted that SpiceJet, over the years with its established presence in the aviation industry has been able to diversify its revenue stream for its cash generation. Acuité believes that the presence of diversified revenue stream and robust fleet will aid SpiceJet's revenue profile over the medium term.