SpiceJet reported a net profit of Rs 26 crore for the December 2024 quarter, bouncing back from a loss of Rs 300 crore in the same period a year ago.
The budget carrier attributed its turnaround to robust passenger demand, better operational efficiencies, and improved yield management.
Total revenue stood at Rs 1,651 crore, marking a 35 per cent growth from the previous quarter’s Rs 1,077 crore. However, it remained lower than the Rs 2,149 crore reported in the year-ago period. Passenger load factor (PLF) was strong at 87 per cent, reflecting sustained occupancy levels.
Financial restructuring strengthens balance sheet
During the quarter, SpiceJet successfully raised Rs 3,000 crore from qualified institutional investors, providing much-needed liquidity. This capital infusion helped the airline achieve a net worth of Rs 70 crore, turning positive for the first time in a decade.
The company also allocated Rs 170 crore towards bringing grounded aircraft back into operation, a crucial step in expanding capacity and improving fleet utilisation.
Revenue per seat improves, outlook remains positive
Revenue Available Per Seat Kilometre (RASK) stood at Rs 4.57 in Q3. The airline expects continued strong demand and network optimisation to drive double-digit growth in RASKs during the fourth quarter of FY25 compared to the previous year.
Operational challenges and future strategy
While SpiceJet has made strides in its financial recovery, challenges remain, including the need for further capacity expansion and operational efficiency improvements. The company is focused on enhancing its fleet, optimising routes, and leveraging cost-saving measures to sustain profitability.
The airline’s turnaround strategy, backed by fresh capital and improving demand, signals a more stable outlook. As it works towards scaling operations and addressing legacy issues, SpiceJet aims to build a stronger and more resilient business in the competitive aviation market.
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