Budget carrier SpiceJet on Monday reported a standalone net profit of ₹205 crore for the quarter ended June as against a loss of ₹789 crore in the year-ago period.
The low-cost carrier recorded the highest domestic passenger load factor of 90% in the first quarter owing to a strong demand for air travel in India.
Total operating revenue for the April-June quarter was ₹2,002 crore compared with ₹2,457 crore in the same quarter of the previous year. For the same comparative period, operating expenses were ₹1,291 crore as against ₹2,072 crore.
Operating profit or earnings before interest, taxes, depreciation, and amortisation (EBITDA) was ₹525 crore for the reported quarter as against a loss of ₹393 crore in Q1 FY23.
Passenger revenue per available seat kilometer (RASK) increased by 26% due to an increase in yield - the average amount of revenue received per paying passenger flown one kilometre - by 22%, the no-frills carrier says.
To strengthen the financial position of the company, SpiceJet's promoter group will infuse ₹500 crore by way of subscription to equity shares or convertible securities or equity share warrants on a preferential basis.
"I am happy that despite facing multiple challenges, we have posted a profit in Q1 FY2024. Our team’s relentless efforts and dedication and the continuous support from our valued customers have been pivotal in this success. I firmly believe in the potential of our airline and I am pleased to have contributed to its growth by infusing ₹500 Crore into the Company," says SpiceJet chairman and managing director Ajay Singh.
"This infusion will help bolster our efforts in reviving our grounded planes, for which we have been working tirelessly, strengthening our fleet and expanding our cargo operations," Singh says.
SpiceJet completed the hive-off of its logistics platform into a separate entity, SpiceXpress and Logistics Pvt Ltd effective April 1, 2023. Consequent to the hive-off there is an improvement of net worth in SpiceJet to the tune of ₹2,557 crore (from negative ₹4,288 crore to negative ₹3,232 Crore), the airline says.
"Our logistics arm continues to soar. Its exceptional performance, with sustained profits, has been a driving force, contributing to our overall success. We remain focused on adapting to the changing landscape of the aviation industry, identifying and seizing new opportunities, and steering our airline towards greater heights," says Singh.
"In terms of operational parameters, SpiceJet had the highest passenger load factor amongst all airlines in the country. The average domestic load factor was 92% for the March 2023 quarter and 88% for FY2023. SpiceJet had the highest load factor of 90% in Q1FY2024," he adds.
Following the earnings announcement, shares of SpiceJet rose as much as 5% to ₹33.45 apiece on the BSE.
