Low-cost airline SpiceJet Ltd on February 15 reported a surprise profit for the December quarter after seven consecutive quarterly losses, helped by increase in fliers and higher yields. The carrier reported a consolidated net profit of Rs 42.45 crore in the December quarter against a loss of Rs 66.78 crore a year ago.
Revenue from operations rose 34.78 percent to Rs 2,204.68 crore for the quarter as against Rs 1,635.79 crore in the last year, as SpiceJet added more destinations and newer aircraft to its fleet.
SpiceJet's logistics platform SpiceXpress continued on its growth trajectory with its revenue surging 17 percent year on year to Rs 584 crore in the quarter against Rs 498 crore a year ago.
"I am happy that SpiceJet reported a profit in Q3 FY2022 driven by excellent logistics operations, rebound in passenger traffic and various accommodations from aircraft manufacturers and lessors. The passenger industry witnessed the much needed turnaround in the third quarter as Covid cases ebbed in the first half of the quarter, travel picked up significantly and there was finally hope that the worst was behind us,” said Ajay Singh, Chairman and Managing Director of SpiceJet.
"However, that changed by the second half of December as Omicron halted that recovery. Our performance would have been much better but was impacted by the unexpected delay in the return to service of the 737 MAX, rising fuel costs and certain exceptional adjustments. I am happy to say that there are renewed signs of recovery in the passenger segment and the logistics segment continues to remain strong," Singh added.
The firm said it operated 390 charters to various countries carrying over 64,000 passengers and launched 40 new routes during the quarter to strengthen its domestic network. It had the best passenger load factor amongst all airlines during the quarter at 85.2 percent.
In November 2021, SpiceJet announced that it has entered into a settlement agreement with Boeing wherein Boeing has agreed to provide certain accommodations and settle the outstanding claims related to the grounding of 737 MAX aircraft and its return to service.
The settlement not only brought back into operations the grounded 737 MAX aircraft but also paved the way for the induction of more efficient and younger MAX aircraft into SpiceJet’s fleet, the firm said.
The settlement also ensures the resumption of new aircraft deliveries from the order of 155 MAX aircraft.
The airline is now aiming for a stronger comeback in 2022 by utilising and expanding its 737 MAX fleet for better yield and flying experience, launching new customer centric services, optimising daily operations based on IT and expanding network both domestically and internationally.
At 2.50pm, SpiceJet was trading at Rs 63.30 on BSE, up 7 percent from its previous close while the benchmark Sensex rose 3 percent to 58,068 points.
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