Low-cost carrier SpiceJet reported its best net profit numbers for a quarter in more than three years, aided by other income and absence of exceptional item, during the December quarter. In the past three quarters, it had posted losses.

Net profit at the standalone level grew more than four times y-o-y to Rs 106.82 crore. This came on the back of the company posting record losses in the September quarter, which was also the worst-ever for SpiceJet.

Revenue from operations grew 3% y-o-y to Rs 2,261.12 crore while other income grew 23% y-o-y to Rs 515 crore. An exceptional item of Rs 77.45 crore had impacted profits of the company in the same quarter last year.

Despite a foreign exchange loss of Rs 114 crore, the company’s total expenses grew by only 6% following a drop in airport charges, aircraft maintenance costs, operating costs and depreciation and amortisation costs.

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Ajay Singh, chairman and managing director, SpiceJet, said, “We exceeded our operational targets clocking the highest load factor for every month in 2022. The profits have been driven by a strong performance in both our passenger and cargo businesses.”

The carrier flew 2.66 million passengers during the December quarter in the domestic market, posting a market share of 7.4%. The airline’s average domestic load factor was 91% for the quarter. It launched 15 new routes and operated 254 charter flights during the reporting quarter.

SpiceJet’s stock closed 12.31% up at Rs 39.7 on the BSE on Friday.

Mitul Shah, head of research, Reliance Securities, said, “Considering improving cost structure, increasing contribution of highly profitable cargo segment and likely strong uptick in aviation traffic, we have BUY rating on SpiceJet.”

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December has traditionally been the strongest quarter of a year for the airline industry as there is a surge in demand during the festive days by the leisure and business market. Airline companies struggled to keep up with capacity addition leading to a surge in airfares.

“There are renewed signs of recovery and some very positive developments and restructuring initiatives in the immediate offing that would significantly strengthen and deleverage our balance sheet,” the airline said.

SpiceJet also said the meeting of board of directors scheduled on Friday has been pushed to February 27. The company is exploring issuance of equity shares on preferential basis and raising of fresh capital.