Monday, August 14, 2023

SpiceJet Q1 results: Airline posts highest profit in four years, reports Rs 205 crore profit on lower costs

 Low-cost airline SpiceJet announced a net profit of Rs 205 crore for the three months ending in June, attributing its success to robust demand for air travel in India. This marked a significant turnaround from the previous year, during which the airline had incurred a net loss of Rs 789 crore.

SpiceJet reported total operating revenue of Rs 2,002 crore in the quarter, compared to Rs 2,457 crore in the corresponding period the prior year. The airline’s operating expenses for the first quarter of the current fiscal year decreased to Rs 1,291 crore from Rs 2,072 crore in the same period the previous year.

Despite the challenges it has faced, SpiceJet’s Chairman and Managing Director, Ajay Singh, expressed satisfaction at the airline’s profitability during the first quarter. Singh also highlighted his personal contribution of Rs 500 crore to the company, which will aid in rejuvenating grounded aircraft.

SpiceJet additionally separated its logistics platform, establishing SpiceXpress and Logistics Pvt Ltd as an independent entity effective April 1. This move led to an enhancement in SpiceJet’s net worth by approximately Rs 2,557 crore, reflecting a positive variance of 25 percent from its previous negative net worth of Rs 4,228 crore.

14/08/2023 Financial Express

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