By Staff Correspondent
Low-cost Indian airline SpiceJet has reported its most substantial net profit in over three years for the December quarter, owing to other income and the absence of exceptional items. The company’s net profit at the standalone level increased more than four-fold year-on-year (YoY) to ₹1.07 billion ($14.2 million), following a record loss in Q3 2022.
Revenue from operations rose by 3% YoY to ₹22.61bn ($300m), while other income increased by 23% YoY to ₹5.15bn ($68m). A foreign exchange loss of ₹1.14bn ($15m) did not prevent total expenses from growing by only 6%, as there was a drop in airport charges, aircraft maintenance costs, operating costs and depreciation and amortisation costs.
SpiceJet chairman and managing director Ajay Singh said: “We exceeded our operational targets clocking the highest load factor for every month in 2022. The profits have been driven by a strong performance in both our passenger and cargo businesses.”
During the December quarter, the carrier flew 2.66 million passengers in the domestic market, with an average domestic load factor of 91%, and posted a market share of 7.4%. SpiceJet launched 15 new routes and operated 254 charter flights during the reporting period.
Reliance Securities’ head of research Mitul Shah has recommended a ‘buy’ rating on SpiceJet, stating that the airline’s cost structure was improving and the cargo segment was becoming more profitable, while demand for aviation traffic was likely to increase.
Airline companies traditionally report a surge in demand during the festive days of December, and SpiceJet’s board of directors is currently exploring the possibility of raising fresh capital by issuing equity shares preferentially.