SpiceJet posts net profit of Rs 205 crore in April-June quarter

New Delhi [India], August 14 (ANI): SpiceJet reported a net profit of Rs 205 crore for the April-June 2023 specified quarter, marking a turnaround from the net loss of Rs 789 crore reported in the same quarter last year.

Ajay Singh, the Chairman and Managing Director of SpiceJet, lauded the efforts of the team and expressed his optimism about the potential of the airline.

SpiceJet Chairman and Managing Director Ajay Singh commented on the outcomes and earnings, “I am happy that despite facing multiple challenges, we have posted a profit in Q1 FY2024. Our team’s relentless efforts and dedication and the continuous support from our valued customers have been pivotal in this success. I firmly believe in the potential of our airline, and I am pleased to have contributed to its growth by infusing INR 500 Crore into the Company. This infusion will help bolster our efforts in reviving our grounded planes, for which we have been working tirelessly, strengthening our fleet and expanding our cargo operations.”

Singh revealed that he personally contributed Rs 500 crore to the company, a move aimed at supporting the airline’s efforts in revitalizing grounded planes, bolstering the fleet and expanding cargo operations.

Singh further underscored the performance of SpiceJet’s logistics arm, SpiceXpress and Logistics Private Limited, which played a crucial role in the airline’s overall success.

He emphasized the airline’s commitment to adapt and thrive within the ever-evolving aviation landscape while seeking out new opportunities to elevate the airline’s position.

On the operational front, SpiceJet continued to impress, boasting the highest domestic passenger load factor amongst all Indian airlines.

The airline achieved an average domestic load factor of 92 per cent for the March 2023 quarter and 88 per cent for the entire fiscal year 2022-23, it said.

SpiceJet’s hive-off of its logistics platform into a separate entity, SpiceXpress and Logistics Private Limited, was another strategic move that contributed to the positive momentum, it said. 

The company earlier could not hold the meeting of Audit Committee and Board Members in the past for approval of financial results for the financial year ended March 31, 2023 due to “ongoing medical incapacitation” of a key member of its Audit Committee, SpiceJet had said in a notice to the stock exchanges on June 29.

The airline had been suffering with financial issues in a cutthroat aviation market, but it was optimistic about its expansion prospects.

The Emergency Credit Line Guarantee Scheme (ECLGS) of the government and internal cash accruals provided SpiceJet with a total of USD 50 million, which it stated it used to start the process of recovering its grounded fleet.

SpiceJet maintained that it had no intention whatsoever of declaring bankruptcy following Go First’s voluntary bankruptcy filing in early May.