Shares of SpiceJet hit the 5% upper circuit for the third consecutive session on Friday, extending a sharp short-term rally even after a UK court ordered the airline to pay about $8 million (₹70 crore) to an aircraft engine lessor.

The stock, which briefly slipped in early trade, recovered quickly as buying interest returned and was locked at ₹12.27 around 10 a.m., indicating continued momentum-driven trading activity.

The ruling came from London’s Commercial Court, which sided with Sunbird France 02 SAS, directing SpiceJet to clear unpaid lease rentals and maintenance dues. The court said the airline had little chance of defending the claim and had not participated meaningfully in proceedings despite multiple opportunities.

The dues relate to unpaid rent starting from January 2022 and maintenance charges dating back to November 2020. The lessor had issued default notices in mid-2022 and later repossessed three aircraft engines between late 2022 and mid-2023.

Following the ruling, lessors are expected to approach the Delhi High Court to enforce the order, potentially increasing financial pressure on the airline.

SpiceJet continues to face broader financial stress, with auditors previously flagging concerns over its ability to remain a going concern due to ongoing losses and balance sheet strain.

Despite these challenges, the stock has surged more than 15% over the past three sessions, driven largely by short-term momentum. However, its longer-term performance remains weak, with the stock still down about 74% over the past year, significantly underperforming broader markets.

Summary

SpiceJet shares extended their sharp short-term rally with a third consecutive upper circuit despite a UK court ordering the airline to pay $8 million in dues. While momentum trading has driven recent gains, the airline continues to face severe financial stress and remains significantly down over the past year.

FAQ

Q1: Why did SpiceJet shares hit upper circuit?
Due to strong short-term buying momentum despite negative legal news.

Q2: What did the UK court order?
It ordered SpiceJet to pay about $8 million in unpaid lease and maintenance dues.

Q3: What are the dues related to?
Unpaid aircraft engine lease rentals and maintenance costs from 2020–2022.

Q4: Is SpiceJet financially stable?
No, auditors have raised going-concern concerns due to ongoing losses and liabilities.

Q5: How has the stock performed long term?
It is still down about 74% over the past year despite recent gains.