SpiceJet profit jumps six-fold to Rs 119 cr in Q4

Revenue from operations during the quarter, however, declined 20% to Rs 1,719.37 crore from Rs 2,144.85 crore in Q4FY23, according to a regulatory filing

Written by FE Bureau

July 16, 2024 03:30 IST

Sibal told the court that of the three engines that were to be returned, two have already been given.

For the full FY24, the airline posted a loss of Rs 409.43 crore against a loss of Rs 1,503 crore in FY 23

Budget airline SpiceJet on Monday reported a six-fold jump in its standalone profit to Rs 119 crore for the fourth quarter of FY24, against Rs 16.85 crore in the year-ago period.

The airline attributed this to healthy load factors, better fare yields and cost-cutting measures. During the quarter under review, it achieved a passenger load factor (PLF) of 92%.

Revenue from operations during the quarter, however, declined 20% to Rs 1,719.37 crore from Rs 2,144.85 crore in Q4FY23, according to a regulatory filing.

“The results reflect our relentless efforts to enhance operational efficiency and our commitment to turning around the company’s fortunes,” said Ajay Singh, chairman and managing director, SpiceJet.

During the quarter, SpiceJet completed a capital infusion of Rs 1,060 crore under a preferential issue. It signed a settlement agreement worth $22.5 million with Export Development Canada (EDC) to resolve $90.8 million (Rs 755 crore) in liabilities. SpiceJet, also, settled liabilities aggregating over $50 million with various lessors.

For the full FY24, the airline posted a loss of Rs 409.43 crore against a loss of Rs 1,503 crore in FY 23, as per the filing.

The airline’s passenger RASK (revenue per available seat-kilometre) improved by 8% compared to last year due to an increase in yield of 7% and a load factor of 1%. SpiceJet reported that it has improved its net worth by Rs 646 crore, or 20%, in FY24 as compared to FY23.

The airline is mired in legal trouble, fighting court battles with aircraft and engine lessors and the erstwhile promoter of the airline.

In a relief to the airline, in January it was granted in-principle approval for a fund infusion of Rs 2,242 crore.

According to Singh, SpiceJet is exploring opportunities to raise fresh funds “to further bolster our growth plans and take advantage of the burgeoning demand in the Indian aviation market”. He added, “We are confident that, with our robust strategy and dedicated team, we will continue to soar to new heights and create value for our stakeholders.”

This article was first uploaded on July sixteen, twenty twenty-four, at thirty minutes past three in the night.