Surabhi Gorebal, Pune
An increase in demand for flights enabled SpiceJet to announce a net profit of Rs 205 crore for the three months that ended in June. The airline, which is dealing with a number of challenges, reported a net loss of Rs 789 crore over the prior 12-month period.
SpiceJet stated in a press release that the profit of Rs. 205 crore was due to, “strong demand for air travel in India”. The statement said that 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.
Operating costs decreased to Rs 1,291 crore in the first quarter of this fiscal year from Rs 2,072 crore in the corresponding period last year.
Ajay Singh, the chairman and managing director of SpiceJet, stated that despite dealing with numerous difficulties, the airline turned a profit in the first three months of the current fiscal 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.
With effect from April 1 this year, SpiceJet separated its logistics platform into SpiceXpress and Logistics Pvt Ltd. According to the announcement, “the hive-off has resulted in an improvement in SpiceJet’s net worth of Rs 2,557 crore (from negative Rs 4,228 crore to negative Rs 3,232 crore, i.e., positive variance by 25%).”
The carrier reported a net profit of Rs 17 crore for the fourth quarter that ended in March 2023, as opposed to a net loss of Rs 458 crore for the same time in the previous year. The airline’s shares increased 3.87 per cent to Rs 32.77 in afternoon BSE trading.