NEW DELHI: Low-cost carrier SpiceJet on Tuesday said it has entered into a full and final settlement with the Airports Authority of India (AAI) and has cleared all outstanding principal dues of the airport operator.

With this, SpiceJet will no longer remain on 'cash and carry' at AAI-run airports across the country and will revert to an advance payment mechanism for daily flight operations.

SpiceJet's ability to clear the pending dues reflects the airline's improved cash flow in recent times.

In another big boost for the airline, AAI will release SpiceJet's Rs 50 crore bank guarantee following the airline clearing all its principal dues. This will result in additional liquidity for the airline, SpiceJet said in a statement.

SpiceJet has flown with the highest passenger load factor in the Indian skies for a record seven years. Starting April 2015, SpiceJet has recorded the highest occupancy among all Indian domestic airlines a feat unparalleled in global aviation. The airline also holds the envious distinction of having flown with a Passenger Load Factor (PLF) of more than 90 per cent for a record 58 consecutive months, it said.

SpiceJet's domestic network covers the length and breadth of the country with the airline operating to 51 domestic destinations. Pioneer of the regional connectivity scheme, SpiceJet is the country's largest regional player helping connect the remotest parts of the country by air.

The airline's focus on providing direct flight connectivity to regional hubs not only ensures better connectivity, it also has a cascading effect on tourism and economic activity in the region.

SpiceJet has added multiple UDAN destinations to the country's aviation map including Pakyong, Jharsuguda, Kandla, Darbhanga, Kanpur, Ajmer (Kishangarh), among others.