SpiceJet, a low-cost carrier, has received a significant boost to its turnaround strategy with CRISIL reaffirming its confidence in the airline’s recovery by assigning it an A4+ rating. This rating is based on SpiceJet’s restructuring plan, strong capital-raising ability, and adequate liquidity. The airline’s efforts to strengthen its financial and operational performance have been recognized, with a focus on disciplined financial management.
The CRISIL rating is the latest in a series of positive developments for SpiceJet, following two consecutive upgrades from Acuité Ratings & Research. In September 2025, Acuité upgraded the airline’s long-term credit rating to ‘BB (Stable)’ from ‘BB- (Stable)’, and reaffirmed its short-term rating at ‘A4+’. These upgrades reflect growing market confidence in SpiceJet’s turnaround strategy.
The key factors supporting the improved rating include SpiceJet’s detailed revival plan, which involves ungrounding 10 aircraft by early 2026 and finalizing damp lease agreements for 18 aircraft. This will result in a 2.5x capacity increase, which is expected to improve the airline’s operating profitability, especially during peak travel seasons.
CRISIL also noted that SpiceJet has a strong liquidity position, with INR 333 crore in free cash and equivalents, supplemented by INR 150 crore in restricted cash. These funds, along with anticipated steady cash inflows, are expected to cover operational expenses, debt repayments, and lease obligations, ensuring stability during the revival process.
The recognition from CRISIL and Acuité signals renewed confidence in SpiceJet’s ability to navigate challenges, expand its operations, and strengthen its position as a key player in India’s low-cost airline segment. Debojo Maharshi, Chief Business Officer of SpiceJet, expressed pleasure at the CRISIL rating, stating that it reaffirms the airline’s commitment to building a stronger and more resilient airline, well-positioned for sustainable growth.
Overall, the CRISIL A4+ rating is a significant boost to SpiceJet’s turnaround strategy, reflecting the airline’s efforts to strengthen its financial and operational performance. With a strong liquidity position and a detailed revival plan in place, SpiceJet is well-positioned to navigate challenges and expand its operations in the Indian low-cost airline segment.