SpiceJet Q1 results: Net profit plunges 20% y-o-y to ₹158 crore

Budget carrier SpiceJet Ltd on Wednesday reported a consolidated net profit of ₹158.2 crore for the quarter ended 30 June, down 20% from the year-ago consolidated net profit of ₹197.6 crore.

While the airline's total income declined 8.3% to ₹2,077.8 crore, it's total expenditure shrunk by over 7% year-on-year to ₹1,919.6 crore.

In July, the Gurugram-based carrier reported its earnings for the December and March quarters of 2023-24 after a wait of more than six months. The airline reported a net loss of ₹299 crore for the December quarter and a net profit of ₹126.9 crore for the March quarter.

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SpiceJet has been embroiled in legal battles over unpaid dues to aircraft lessors, vendors and suppliers and faces contempt notices from the Delhi high court and the National Company Law Tribunal. The airline’s market share has shrunk rapidly over the past five years to 3.8% of the domestic aviation market in June 2024 from 4.4% in June 2023 and 15.6% in June 2019.

Earlier this year, the airline laid off about 1,500 employees, or about 15% of its staff, following a two-thirds reduction in its fleet size for want of funds. The airline expects to save about ₹100 crore per year from these measures.

The company's total liabilities at the end of the June quarter stood at around ₹11,252 crore, compared to ₹11,690.7 crore as of 31 March and ₹12,420.2 crore as of 31 December 2023.

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The company further added that it had initiated the process of raising ₹3,000 crore through a qualified institutional placement (QIP), which is expected to be completed by the end of September.

“This fresh infusion of funds will be pivotal in enabling the airline to expand and unground its fleet, enhance operational capabilities, settle liabilities and improve its overall market competitiveness. These funds will stabilize the overall operations and allow expansion,” the airline added.

The airline also reiterated that it remains focused on its long-term strategy of expanding its domestic and international network, investing in newer, more fuel-efficient aircraft.

Also Read: For SpiceJet to stay afloat, some crew will have to deplane

The airline's stock closed 2.5% lower at ₹55.03 on Wednesday. The 30-share BSE Sensex ended higher by 149.85 points or 0.19% at 79,105.88.