SpiceJet Returns to Profitability: Records ₹205 Crore Profit in the June Quarter
SpiceJet Achieves Profit of ₹205 Crore in Q1, Fueled by Robust Air Travel Demand
New Delhi-based budget airline SpiceJet reported a notable net profit of ₹205 crore during the three-month period concluding in June, reflecting a surge in air travel demand. This marked a significant turnaround compared to the prior fiscal year, when the carrier had incurred a net loss of ₹789 crore.
SpiceJet attributed its profitable outcome of ₹205 crore to the robust demand for air travel within India. The airline's total operating revenue for the quarter amounted to ₹2,002 crore, a decline from ₹2,457 crore registered in the corresponding quarter of the previous year.
Operating expenses for the first quarter of this fiscal year reduced to ₹1,291 crore, compared to ₹2,072 crore during the same period in the preceding year.
Ajay Singh, Chairman and Managing Director of SpiceJet, expressed satisfaction with the airline's performance despite facing various challenges. Singh underlined his contribution of ₹500 crore to the company, which aids in revitalizing grounded aircraft.
SpiceJet's logistical arm, SpiceXpress and Logistics Pvt Ltd, was established as a separate entity effective April 1. This strategic move bolstered SpiceJet's net worth by ₹2,557 crore, exhibiting a 25% positive variance from the previous figure of negative ₹4,228 crore.
During the fourth quarter of the fiscal year ending March 2023, the airline posted a net profit of ₹17 crore, a substantial improvement from the net loss of ₹458 crore incurred in the same period the previous year.
In afternoon trading on the Bombay Stock Exchange (BSE), the airline's shares surged by 3.87%, reaching ₹32.77.