SpiceJet Ltd's shares went up more than 5 per cent on Thursday as the budget carrier is likely to get an additional loan of 1,000 crore under the government's modified Emergency Credit Line Guarantee Scheme.
The airline's shares were trading 5.46 per cent higher to trade at Rs 40.55 in afternoon deals. The stock was up by 9.23 per cent during intraday deals to hit Rs 42. The airline's shares traded more than 53 per cent less than their 52 week high of Rs 87.25.
SpiceJet is likely to get a further loan of 1,000 crore under the government's modified Emergency Credit Line Guarantee Scheme, according to an airline source.
Also Read : Centre expands collateral-free liquidity limits for civil aviation sector to help struggling airlines.
The airline would get the funds to clear its dues by the end of the day.
The maximum loan amount eligibility for airlines under the scheme was raised to 100 percent of their loan outstanding to help companies deal with cash-flow problems.
The ECLGS, originally launched in 2020 to provide cheaper loans to small businesses MSMEs during the Pandemic period, was due to expire on March 31, 2022. In the Budget 2022-23, Union finance minister Nirmala Sitharaman extended the scheme until March 2023, along with expanding its corpus and scope.
Also Read : DGCA extends 50% cap on SpiceJet operations until October 29 over safety incidents.
SpiceJet is currently operating less than 50 per cent of its approved flights, following an order from the Directorate General of Civil Aviation DGCA due to multiple incidents involving its aircraft. The aviation regulators extended a restriction on SpiceJet's flight departures until October 29th.
Domestic passenger traffic has plateaued at around 90 per cent of pre-Covid levels over the past few months. The passenger traffic is expected to improve during the festive season, according to a report by Centrum Institutional Research.