SpiceJet on Monday reported a net profit of Rs 205 crore for the first quarter ended June 2023 on the back of strong demand for air travel in India, according to a statement. It is compared to a net loss of Rs 789 crore in the year-ago quarter, and is a 126 per cent jump on a quarter-on-quarter basis.
Spicejet’s operating expenses during April-June 2023 stood at Rs 1,291 crore as against Rs 2,072 crore in the year-ago period, according to the statement.
Following the results, shares of Spicejet on Monday, August 8, were trading higher by Rs 1.34 or 4.25 per cent at Rs 32.89 apiece on the BSE.
“On an Ebitda basis, profit was Rs 525 crore for the reported (June 2023) quarter against a loss of Rs 393 crore for the quarter ending June 30, 2022. Total operating revenue for the reported quarter was Rs 2,002 crore as against Rs 2,457 crore in the same quarter of the previous year,” Spicejet said in the statement.
The airline lowered its net loss to Rs 1,503 crore in FY2023 compared to Rs 1,725 crore in FY2022. For the same comparative period, SpiceJet reported operating revenue of Rs 8,869 crore in FY2023 as against Rs 6,557 crore in FY2022.
SpiceJet completed the hive-off of its logistics platform into a separate entity, SpiceXpress and Logistics Private Limited effective April 1, 2023. Consequent to the hive-off, there is an improvement of net worth in SpiceJet to the tune of Rs 2,557 crore (from negative Rs 4,288 crore to negative Rs 3,232 crore i.e. positive variance by 25 per cent).
Ajay Singh, chairman and managing director of SpiceJet, said, “Despite facing multiple challenges, we have posted a profit in Q1 FY2024. Our team’s relentless efforts and dedication and the continuous support from our valued customers have been pivotal in this success. I firmly believe in the potential of our airline, and I am pleased to have contributed to its growth by infusing Rs 500 crore into the company.”
He added that this infusion will help bolster our efforts in reviving the airline’s grounded planes, for which we have been working tirelessly, strengthening the fleet and expanding cargo operations.
“Our logistics arm continues to soar. It is exceptional performance, with sustained profits, has been a driving force, contributing to our overall success. We remain focused on adapting to the changing landscape of the aviation industry, identifying and seizing new opportunities, and steering our airline towards greater heights,” Ajay Singh said.
In terms of operational parameters, SpiceJet had the highest passenger load factor among all airlines in the country. The average domestic load factor was 92 per cent for the March 2023 quarter and 88 per cent for FY2023. SpiceJet had the highest load factor of 90 per cent in Q1FY2024.
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