SpiceJet Q3 earnings: Airline reports ₹26 crore net profit for December quarter after successful QIP

SpiceJet on Wednesday, February 26, reported a net profit of ₹26 crore for the October-December quarter of the financial year 2024-25 on better passenger load, improved yields, and enhanced operational efficiency. The budget airline had seen a net loss of ₹300 crore in the corresponding quarter last fiscal year.

Its total revenue increased 35% to ₹1,651 crore, driven by strong passenger demand, improved yields and enhanced operational efficiency. However, compared to ₹2,149 crore reported in the three months ended December 2023, the total revenue is lower in the latest December quarter.

The airline’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) stood at ₹210 crore (₹316 crore ex-forex) as against ₹3 crore (₹30 crore ex-forex) in the same quarter last fiscal.

During the quarter, the company completed its ₹3,000 crore qualified institutional placement (QIP). This strengthened the airline’s finances and helped them to achieve key operational milestones, it said in an exchange filing. It also enabled the resolution of major legacy liabilities, fleet expansion, and accelerated operational growth.

The airline has launched 32 new flights for the winter schedule and a total of 60 new flights added since QIP, it said in a regulatory filing.

SpiceJet has spent ₹170 crore during the reporting period to unground its aircraft.

“For the first time in a decade, the company has turned net worth positive – an important milestone that underscores the success of our turnaround strategy. The past is behind us, and we are now firmly focused on building a stronger, more resilient future for SpiceJet,” said Ajay Singh, Chairman and Managing Director, SpiceJet.

During this year, the company has successfully settled multiple outstanding disputes with aircraft & engine lessors, amounting to ₹1,700 crore at ₹1,233 crore, resulting in a financial benefit of ₹467 crore, SpiceJet noted. “In discussions with many other lessors for amicable resolution of old disputes,” it further stated.

The airline's fleet expanded during the quarter, inducting 10 aircraft, including 3 previously grounded aircraft. “Actively working to unground 7 B737 Max, 4 737 NG and 6 Q400 aircraft. The 737-8 MAX returned to service; partnered with StandardAero Inc. (engine MRO) to expedite fleet enhancement,” it said.

Meanwhile, the revenue available per seat kilometre (RASK) stood at ₹4.57 in the third quarter of this financial year.

“The overwhelming response to our QIP and the trust of global investors, combined with operational resilience and financial discipline, have set the stage for sustained growth. We have significantly strengthened our balance sheet, resolved key disputes, and are continuously expanding our fleet. We are in discussions with OEMs for advanced deliveries of aircraft and are actively exploring both organic and inorganic growth opportunities,” Singh further said.

Shares of the budget airline closed at ₹47.97 per share, rising 1.7% on BSE.

The results for the third quarter of the current financial year were scheduled to be announced on Tuesday.

However, the meeting of the company's board of directors, through video conferencing, started at 1:30 pm and ended only at 11:50 pm on Tuesday, according to a filing made to the BSE at 12:51 am on Wednesday.