Budget airline SpiceJet Ltd shares flew over five percent in early trade on Monday, June 16, after the airline reported a sharp jump in earnings for the March quarter of FY2025. However, investors were quick to book profits, causing the shares to slip to the flatline.
SpiceJet has reported its highest-ever quarterly net profit of Rs 319 crore for Q4 FY25, a 12-fold jump from Rs 26 crore in the previous quarter, signalling a strong turnaround for the low-cost carrier after years of financial turbulence.
This marks the airline’s second consecutive profitable quarter and, notably, its first full-year net profit since FY18. For the full financial year, SpiceJet posted a profit of Rs 48 crore, reversing a net loss of Rs 404 crore in FY24.
Further, SpiceJet and Carlyle Aviation Management have entered into a term sheet to restructure certain aircraft lease obligations of SpiceJet aggregating to $121 million.
At 10.30 am, SpiceJet shares were quoting Rs 44 on the BSE, higher by about half a percent after trimming its instaday gains.
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SpiceJet's yield at Rs 6.4/km, up 28 percent YoY, raced ahead of IndiGo’s Rs 5.3/km (up 2 percent YoY) as SpiceJet operated more flights on high revenue routes due to a reduction in its operational fleet, said Nuvama Institutional Equities. "Q4 marked a stronger-than-expected yield environment due to the 45-day Maha Kumbh festival and SpiceJet’s focus on non-metro destinations."
The brokerage added that the airline's QIP of Rs 3,000 crore shall allow repayment of outstanding dues and induction of aircraft on ground (AoG), which has commenced. "We reckon recovery shall be gradual; a full turnaround a key variable." Further, Nuvama maintained its 'hold' rating, with a price target of Rs 48 per share.
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