SpiceJet unlocks Everest access: Daily Delhi–Kathmandu flights soar from May 10

SpiceJet Limited has announced a daily non-stop service between Delhi and Kathmandu, beginning May 10, 2025, marking its first new international destination following a major fundraising milestone. This strategic move signals the airline’s renewed operational ambition following its ₹3,000 crore Qualified Institutional Placement (QIP), a development that marked a critical financial inflection point. For an airline that has weathered regulatory scrutiny, fleet grounding, and funding uncertainties in recent years, this new route to Nepal represents more than just market expansion—it is a clear indicator of a carrier actively charting a turnaround path.

Flight SG 41 will depart Delhi at 8:10 a.m. and arrive in Kathmandu at 9:55 a.m. local time, while the return SG 42 will leave Kathmandu at 10:55 a.m. and land in Delhi at 1:10 p.m. The route will be operated by SpiceJet’s Boeing 737 aircraft, offering SpiceMax—its extra legroom economy-class product. The addition strengthens its short-haul international network, which currently includes Dubai and Bangkok, and enhances regional air connectivity across South Asia.

Why is Kathmandu a strategic international route for SpiceJet?

Kathmandu is not only the capital of Nepal but also a cultural, religious, and adventure tourism epicentre. Nestled in the Himalayan foothills, it attracts pilgrims, backpackers, and mountaineers from across the world. As the gateway to Everest and other major trekking circuits, Kathmandu holds natural appeal for Indian tourists, religious travellers, and outbound Nepali passengers heading to cities like Delhi for education, healthcare, or connecting international flights.

SpiceJet’s Chief Business Officer Debojo Maharshi pointed to this high demand in the India–Nepal corridor, describing the new route as a bridge connecting the vibrant streets of Kathmandu with the global connectivity hub of Delhi. The airline sees this route as an essential link for both tourists and business travellers seeking seamless access between the two capitals.

By launching a competitive product on a high-traffic regional sector, SpiceJet aims to tap into both point-to-point travel demand and transit traffic bound for the Middle East, Europe, and Southeast Asia through Delhi. Its decision also reflects a broader strategic trend among Indian carriers focusing on regional short-haul routes with high load factors and yield potential.

How does this new route reflect SpiceJet’s financial recovery and growth strategy?

SpiceJet’s expansion into Kathmandu follows its ₹3,000 crore QIP and a promoter investment of ₹294.09 crore by Ajay Singh, both of which significantly improved the airline’s liquidity position. These infusions have provided critical breathing room for the airline, allowing it to stabilise operations, clear dues, and invest in network development.

As part of its recovery strategy, SpiceJet has already expanded its domestic footprint to cities like Shivamogga, Tuticorin, Porbandar, and Dehradun, and has resumed operations to destinations such as Gorakhpur. The addition of Kathmandu is its first international foray post-QIP and is designed to showcase both commercial viability and regulatory confidence.

Adding to the positive momentum, credit rating agencies Acuité Ratings & Research and CareEdge Ratings have upgraded SpiceJet’s outlook, reflecting improved risk management and capital structure. This strengthening of financial fundamentals has helped boost market sentiment, though analysts remain cautiously optimistic due to structural risks inherent in the low-cost aviation sector.

What does this route mean for Indo-Nepal air travel and regional tourism?

India and Nepal share not only open borders but also deeply intertwined economic and cultural ties. In this context, the availability of more affordable, daily air connectivity will directly benefit tourism, religious travel, and bilateral trade. Nepali travellers gain greater access to medical, educational, and professional opportunities in India, while Indian tourists are increasingly drawn to Nepal’s natural and spiritual offerings.

The daily Delhi–Kathmandu flight also serves diplomatic objectives by reinforcing India’s regional connectivity commitments. With Nepal a key partner in the BBIN (Bangladesh–Bhutan–India–Nepal) framework, civil aviation has emerged as a priority sector in fostering greater integration. As a result, the new route may contribute to a broader regional narrative around economic mobility and cross-border cooperation.

How does this affect competition and passenger experience on the route?

The India–Nepal aviation corridor is already served by major players including IndiGo and Air India, but the arrival of SpiceJet introduces more price competition and alternative schedules. Passengers stand to benefit from lower fares, more choices, and greater availability, particularly during high-demand travel seasons.

SpiceJet’s deployment of the Boeing 737 fleet on this route allows for consistent service delivery and capacity, including the availability of SpiceMax—offering enhanced comfort on a short international hop. The airline is also leveraging digital platforms, with bookings available via its official website, mobile app, online travel agencies, and traditional agents, further streamlining the passenger experience.

What are analysts saying about SpiceJet’s stock and future prospects?

As of April 3, 2025, SpiceJet’s stock has shown marginal gains on the Bombay Stock Exchange, reflecting cautious optimism among investors regarding the airline’s recovery efforts. The successful QIP, credit upgrades, and continued route additions are viewed as positive signals. However, analysts remain split on the company’s long-term prospects.

The general market consensus is that SpiceJet is in a “Hold” zone, given its recent stabilisation but lingering structural risks. Analysts note that the airline still faces high fuel costs, intense market competition—especially from IndiGo—and legacy issues such as vendor liabilities and leasing obligations.

From a bullish perspective, the new Kathmandu route is viewed as revenue-accretive and strategically sound, especially considering the robust India–Nepal travel demand. The promoter’s continued capital commitment also underscores confidence in the company’s trajectory. However, for more risk-averse investors, the recommendation remains conservative due to sectoral volatility and macroeconomic headwinds.

Investors are advised to closely monitor upcoming quarterly results for FY2025, with specific focus on load factors, revenue per available seat kilometre (RASK), and fuel cost management. The airline’s ability to manage these variables while expanding its network will determine its path to sustainable profitability.

What lies ahead for SpiceJet’s international ambitions?

SpiceJet’s return to international markets through the Delhi–Kathmandu route is a critical stepping stone in a broader strategy to tap underserved regional sectors. The airline’s international ambitions are expected to prioritise high-demand, short- to medium-haul destinations, particularly in the Middle East and Southeast Asia—regions with a significant Indian diaspora presence.

The airline’s current posture appears deliberate and disciplined: focusing on profitable, manageable segments rather than pursuing aggressive long-haul expansion. As it rebuilds operational confidence and stakeholder trust, future routes may target key transit hubs and tourism corridors with strong bilateral agreements and limited direct competition.

Ultimately, the Kathmandu launch is emblematic of a new chapter for SpiceJet—a recalibrated, financially reinforced airline seeking to reclaim its space in South Asian aviation. With the inaugural flight just weeks away, all eyes will be on the carrier’s execution, punctuality, and route profitability as signals of whether this comeback can sustain lift.