SpiceJet swings back to profit in Q3 FY25
What's the story
Popular Indian budget airline SpiceJet has posted a standalone net profit of ₹25 crore for the third quarter (Q3) of the current financial year (FY25).
This is a major turnaround from the ₹301.5 crore loss in the same period last fiscal year.
The company had also posted a loss of ₹441.7 crore in the previous quarter (Q2 FY25).
Revenue drop
Operational revenue dips by 35% in Q3
Despite returning to the black, SpiceJet saw a 35% year-on-year decline in operational revenue for Q3 FY25.
The company's revenue declined to ₹1,140.7 crore from ₹1,756.6 crore in the same quarter last fiscal year.
However, its earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter were much higher at ₹210 crore as opposed to just ₹3 crore earlier.
Financial turnaround
Net worth turns positive after a decade
In a major financial development, SpiceJet announced that its net worth has turned positive for the first time in 10 years, standing at ₹70 crore.
SpiceJet Chairman and Managing Director Ajay Singh credited the company's resilience and focus on financial recovery for the achievement.
He said this quarter's performance highlights the success of their turnaround strategy.
Investment boost
QIP strengthens financial position
SpiceJet's financial position has been strengthened by a ₹3,000 crore qualified institutional placement (QIP).
The investment has enabled the resolution of major legacy liabilities, fleet expansion, and accelerated growth in operations.
Singh thanked the global investors for their trust and overwhelming response to their QIP.
He also noted ongoing discussions with original equipment manufacturers (OEMs) for advanced aircraft deliveries as part of their growth strategy.
Operational performance
SpiceJet records 87% passenger load factor in Q3
SpiceJet reported a passenger load factor (PLF) of 87% in Q3, a critical airline industry metric that indicates seat occupancy efficiency.
The company's overall passenger RASK (revenue per available seat kilometer), another important industry metric, was at ₹4.57.
SpiceJet's Chief Business Officer Debojo Maharshi expects double-digit growth in RASKs in FY25's fourth quarter, given strong demand and efficient network optimization.