SpiceJet, an airline often questioned for its survival amidst numerous challenges, has embarked on a significant expansion phase despite reporting a loss of ₹635.42 crore (or ₹447.7 crore excluding Foreign Exchange loss) in Q2-FY26. This is notable when compared to IndiGo, a carrier more than 12 times its size, which posted a loss of ₹2,582 crore in the same quarter.

The airline's recent growth includes announcements to add more narrowbody aircraft to its fleet and reactivate its own MAX 8 planes. In just 30 days, SpiceJet has increased its active fleet by 15 aircraft, comprising 14 wet/damp leases and one of its own. This brings the total active aircraft count to 35, consisting of 28 737s (NG and MAX variants) and seven Q400s. While plans to unground more Q400s were announced over the last three quarters, progress has been minimal, primarily due to persistent supply chain issues.

SpiceJet aims to operate 250 daily flights next month, marking a 2.5-fold increase from September's figures. This aggressive growth strategy positions the airline to potentially compete with Akasa Air for domestic market share, after having secured barely 2% in recent months. Data from Cirium, an aviation analytics firm, indicates that this expansion is primarily concentrated in major metropolitan hubs. In December, the airline plans to offer 276 weekly departures from Delhi, up from 144 in September, and 185 from Mumbai, compared to 68 previously. Other significant increases include Chennai (107 vs 32), Kolkata (102 vs 29), and Ahmedabad (65 vs 15).

Internationally, SpiceJet has expanded its network beyond its prior two destinations of Dubai and Bangkok. New flights have commenced to Kathmandu and Phuket, alongside temporary arrangements for flights to Najaf and Fujairah. Dubai, however, remains the cornerstone of SpiceJet’s international network. With its legacy allocation, Dubai has been crucial for the airline's resilience. Before the arrival of wet-leased planes, when SpiceJet's operations had shrunk to around 100 flights, Dubai was its second-largest station after Delhi, boasting 74 weekly flights.

Despite additional seat allocation preventing further flight launches, Dubai continues to be the fifth-largest station in SpiceJet's network, connecting with nine Indian cities. The airline's focus on Dubai is evident in its skeletal international schedule, which accounts for 19.8% of its total network by Available Seat Kilometers (ASK) and 9.6% by total seats. For comparison, IndiGo deploys 19.51% of its ASKs on international routes, with 7.4% of its seats internationally. Nevertheless, IndiGo remains significantly larger in absolute terms across all operational parameters.

Financially, SpiceJet continues to face severe headwinds. Its auditor has once again highlighted accumulated losses of ₹8,637.9 crore and current liabilities exceeding current assets by ₹4,277.3 crore as of September 30, 2025. These figures cast “significant doubt” on the company’s ability to continue as a going concern, a recurring remark in its auditor notes. The airline’s negative net worth stood at ₹2,801.9 crore at the end of September, a stark increase from the ₹630 crore negative net worth recorded in December 2014, when the airline was on the brink of collapse.

Fleet management also presents a considerable challenge. The recent induction of a wet-leased A340-300, a known gas guzzler, for flights between Bangkok and Dubai before being parked at Dubai World Central Airport (DWC), exemplifies the complexities. With wet/damp leased aircraft now outnumbering its own or self-leased ones, the operating costs are higher. The airline will need to manage frequent leases and returns to align with India’s business cycles, where Q1 and Q3 of the financial year are stronger. While attracting experienced talent like Sanjay Kumar as Executive Director may aid business management, resolving fleet issues fundamentally requires capital. The addition of new aircraft will boost revenue and market share, but the ultimate determinant of SpiceJet's long-term viability lies in its ability to generate surplus cash from its operations to meet obligations and fund future growth.