SpiceJet shares fall 4% even after returning back to black, profit at Rs 26 crore in Q3

Over the past month, shares of SpiceJet have climbed 9 percent

Shares of SpiceJet fell over 4 percent to Rs 44 apiece on February 27 after the airline operator returned to profitability, reporting a net profit of Rs 26 crore for the December quarter (Q3FY25). This marks a significant turnaround from a loss of Rs 300 crore recorded in the same period a year ago.

The budget carrier attributed its return to the black to strong passenger demand, enhanced operational efficiencies, and improved yield management.

SpiceJet’s total revenue surged by 35 percent year-on-year to Rs 1,651 crore in Q3, while its passenger load factor (PLF) remained strong at 87 percent, highlighting sustained occupancy levels.

During the quarter, the airline successfully raised Rs 3,000 crore from qualified institutional investors, providing much-needed liquidity. This capital infusion enabled SpiceJet to achieve a net worth of Rs 70 crore, turning positive for the first time in a decade.

Additionally, the company allocated Rs 170 crore to reintroducing grounded aircraft into operation, a crucial step in expanding capacity and improving fleet utilization.

Revenue Available Per Seat Kilometre (RASK) stood at Rs 4.57 in Q3. Looking ahead, the airline anticipates continued strong demand and network optimization to drive double-digit growth in RASKs during the fourth quarter of FY25 compared to the previous year.

"For the first time in a decade, the company has turned net worth positive – an important milestone that underscores the success of our turnaround strategy," said Chairman and Managing Director Ajay Singh.

"We have significantly strengthened our balance sheet, resolved key disputes, and are continuously expanding our fleet," he added, noting that the company is actively exploring both organic and inorganic growth opportunities.

Over the past month, shares of SpiceJet have climbed 9 percent, outperforming the Nifty’s 1 percent decline during the same period.