Happy days are back at SpiceJet as the airline shares were trading at day’s high today. The shares surged over 5% from its intraday low. The shares were trading at ₹58.44 on the BSE at 2.45 pm, 1.12% or ₹0.65 higher than the previous day’s close. However, as soon as the carrier announced that it had cleared all the pending employee provident fund (PF) dues amounting to ₹160.07 crore, spanning over two years, the shares spiked.
“This move reaffirms our commitment to employee welfare and financial accountability,” SpiceJet said. SpiceJet raised ₹3000 crore through a Qualified Institutional Placement (QIP) in the last three months. Since then, the airline has cleared all pending statutory liabilities, including Tax Deducted at Source (TDS), Goods and Services Tax (GST), and employee salary dues.
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“With the airline now current on its statutory dues, it is poised to save significantly on interest payments. Since October 2024, SpiceJet has been utilising its internal cash flows to meet its statutory obligations, including PF and TDS payments, reflecting the airline’s improved financial health and operational discipline,” said the airline.
Pleased to announce the clearance of all pending employee PF dues, Ajay Singh, chairman and managing director, SpiceJet said: “By clearing all pending statutory dues and settling disputes with lessors and creditors, we are demonstrating our unwavering commitment to operational excellence, financial prudence, and the welfare of our employees.”
“With the successful implementation of our financial turnaround strategy, we are confident in our ability to continue delivering superior service to our customers and achieving sustainable growth,” Singh added.
The airline also claimed it had resolved multiple disputes with aircraft lessors and other creditors, significantly improving its balance sheet. SpiceJet was dealing with legal issues over unpaid dues to air aircraft lessors, vendors and suppliers. It also faced contempt notices from the National Company Law Tribunal and Delhi High Court.