SpiceJet’s Q3 net profit jumps 162% to ₹110 crore on air travel recovery, shares surge 13%

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SpiceJet’s Q3 net profit jumps 162% to ₹110 crore on air travel recovery, shares surge 13%
  • Meanwhile, SpiceJet’s total income for the reported quarter rose 5.4% to ₹2,822 crore from ₹2,677 crore last year.
  • Following the strong growth in profitability, shares of the company surged nearly 13% on Friday.
  • However, SpiceJet said that it continues to remain impacted by high fuel prices and depreciating rupee.
  • The management also conveyed that it has reached its operational targets and performed better than expected while it can see renewed signs of recovery.
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Low-cost carrier SpiceJet posted a 162% surge in net profit to ₹110 crore for the December quarter, compared with ₹42 crore last year, aided by a robust performance in its passenger and cargo businesses. In the September quarter, the airline had reported a loss of ₹833 crore impacted by record high fuel prices, limited capacity and rupee depreciation.

“The profits have been driven by a strong performance in both our passenger and cargo businesses. There are renewed signs of recovery and some very positive developments and restructuring initiatives in the immediate offing that would significantly strengthen and deleverage our balance sheet,” said Ajay Singh, chairman and MD at SpiceJet in an exchange filing.

Following the strong growth in profitability, shares of the company surged nearly 13% on Friday.

The pick up in air traffic is a broad-based trend seen in the industry as IndiGo also reported a multifold rise in net profit for the December quarter at ₹1,422 crore compared to ₹129 crore last year.

However, SpiceJet said that it continues to remain impacted by high fuel prices and depreciating rupee.

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Meanwhile, SpiceJet’s total income for the reported quarter rose 5.4% to ₹2,822 crore from ₹2,677 crore last year. At the same time, total expenses rose 6% to ₹2,712 crore from ₹2,557 crore last year.

The management also conveyed that it has reached its operational targets and performed better than expected while it can see renewed signs of recovery.

"We exceeded our operational targets and continued with our unmatched performance, clocking the highest load factor for every single month in 2022. Air travel has come roaring back, touching newer heights and giving a glimpse of the huge potential of the Indian aviation market and we look forward to a robust and exciting 2023," he said.

The airline also highlighted that in terms of operational parameters, it has the highest passenger load factor amongst all airlines in the country. The average domestic load factor was 91% for the quarter. The airline launched 15 new routes and operated 254 charter flights in the quarter.

It operates a dedicated air cargo service under the brand name SpiceXpress offering cargo connectivity across India and on international routes. SpiceXpress reported a net profit of ₹12 crore in Q3 FY2023. SpiceXpress revenue was ₹120 crore in the reported quarter.

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SpiceJet operates a fleet of Boeing 737s, Q-400s & freighters and is the country's largest regional player operating multiple daily flights under UDAN or the Regional Connectivity Scheme.

(With inputs from IANS)


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