SpiceJet back in black; posts Rs 205 crore profit in June quarter

New Delhi: No-frills carrier SpiceJet on Monday reported a net profit of Rs 205 crore in the three months ended June, helped by strong air travel demand.

The airline, which is facing multiple headwinds, had recorded a net loss of Rs 789 crore in the year-ago period.

In a release, SpiceJet said the profit of Rs 205 crore was on account of "strong demand for air travel in India".

"Total operating revenue for the reported quarter was Rs 2,002 crore as against Rs 2,457 crore in the same quarter of the previous year," it said.

In the first quarter of this fiscal, operating expenses declined to Rs 1,291 crore as against Rs 2,072 crore in the same period a year ago.

SpiceJet Chairman and Managing Director Ajay Singh said that despite facing multiple challenges, the airline posted a profit in the first quarter of the current financial year.

"I am pleased to have contributed to its growth by infusing Rs 500 crore into the company. This infusion will help bolster our efforts in reviving our grounded planes...," he said.

SpiceJet hived off its logistics platform into a separate entity SpiceXpress and Logistics Pvt Ltd with effect from April 1 this year.

"Consequent to the hive-off, there is an improvement of net worth of SpiceJet to the tune of Rs 2,557 crore (from negative Rs 4,228 crore to negative Rs 3,232 crore i.e. positive variance by 25 per cent)," the release said.

In the fourth quarter ended March 2023, the carrier posted a net profit of Rs 17 crore whereas it had a net loss of Rs 458 crore in the same period a year ago.

Shares of the airline jumped 3.87 per cent to Rs 32.77 in the afternoon trade on the BSE.