SpiceJet Q3 results: Airline swings to black with Rs 25 crore net profit

The Gurugram-based airline had reported a net loss of Rs 300 crore for the third quarter of 2023-24 (FY24) and a net loss of Rs 431.54 crore in the second quarter of FY24.

SpiceJet Ltd on February 26 posted a widening of net loss at Rs 441.7 crore for the July-September period and a net profit of Rs 25 crore for the October-December period, as the cash-strapped airline announced the earnings for two quarters together after a board meeting that ended late on February 25.

"For the first time in a decade, the company turned net worth positive - an important milestone that underscores the success of our turnaround strategy. The past is behind us and we are now firmly focused on building a stronger, more resilient future for SpiceJet," chairman and managing director Ajay Singh said in a statement.

The Gurugram-based airline had reported a net loss of Rs 300 crore for the third quarter of 2023-24 (FY24) and a net loss of Rs 431.54 crore in the second quarter of FY24.

The revenue for both Q2FY25 and Q3FY25 came in at Rs 817.12 crore and Rs 1,140.66 crore, respectively, lower from Rs 1,425.29 crore seen in Q2FY24 and Rs 1,756.6 crore in Q3FY24.\

"Total revenue surged by 35 per cent to Rs 1,651 crore, driven by strong passenger demand, improved yields and enhanced operational efficiency. Passenger Load Factor (PLF) stood at an impressive 87 per cent," the airline said in the statement.

The fall in revenues was despite a sharp rise in domestic travel during the two quarter as demand for domestic travel in India has continued to surge for the past eight quarters.

In Q2FY25, SpiceJet carried 9.69 lakh passengers, commanding a market share of 2.5 percent. Last year, during the same period, the carrier carried 15.90 lakh passengers commanding a market share of 4.3 percent. Similarly, in Q3FY25, SpiceJet carried 12.67 lakh passengers, commanding a market share of 3 percent. Last year, during the same period, the carrier carried 21.84 lakh passengers commanding a market share of 5.6 percent.

"Strong demand and effective network optimisation are expected to drive a double-digit growth in RASKs during the fourth quarter of FY25 compared to the previous year," SpiceJet chief business officer Debojo Maharshi said.