Budget carrier SpiceJet on Wednesday said it has settled a dispute on unpaid dues with lessor Nordic Aviation Capital (NAC), with three aircraft returning to its fleet.

The airline said the agreement settles all past liabilities for the Q400s. It currently operates five Bombardier Q400 aircraft from NAC.

The induction of the three planes in addition to the fleet revival and restoration program launched by the airline would result in a substantial addition of planes in the coming weeks.

The carrier has been scrambling to raise funds amid a string of quarterly losses, compounded by some lessors taking the airline to court to settle unpaid dues and requesting the country's aviation regulator to deregister their planes.

Earlier this month, the budget carrier said it plans to add 10 narrow-body Boeing aircraft, including five B737 Max, on lease by October.

In the intervening period, the airline is working on restoring and reviving its grounded aircraft.

"We will be inducting 10 B737 aircraft in September-October. The induction of these planes, which coincides with the peak travel season in India, will help us launch new routes and strengthen our presence on existing ones," Ajay Singh, chairman and managing director of SpiceJet said.

The airline said it has already signed a lease agreement for these 10 planes which will start joining the fleet from September to cater to the rising demand.

In May, SpiceJet announced it has initiated the process of reviving its grounded fleet with the $50 million funds received by the company from the government’s Emergency Credit Line Guarantee Scheme (ECLGS) and internal cash accruals.

SpiceJet had announced plans to revive 25 grounded aircraft that will help it capitalise and make the most of the upcoming peak travel season.