SpiceJet reports net profit of Rs 23.28 cr in Q3

Budget airline SpiceJet on Tuesday reported a net profit of Rs 23.28 crore for October-December quarter of 2021 as against a loss of Rs 56.96 crore in the December quarter of previous year. The company had reported a loss of Rs 561.70 crore in the preceding September quarter.
 
The airline said it reported a profit in the quarter despite a one-time expense of Rs 77.46 crore on account of a settlement agreement it entered with manufacturer of Q400 aircraft.
 
Total revenue from operations rose to Rs 2,259.30 crore from Rs 1,686.62 crore in the year-ago quarter and Rs 1,342.60 crore in the September quarter due to addition of more destinations and newer aircraft to the fleet.
 
The company said its earnings before interest, tax, depreciation and amortisation (EBIDTA) profit stood at Rs 511 crore as against a loss of Rs 106 crore in preceding September quarter.
 
SpiceJet said its capacity in terms of seat kilometres increased by 78 per cent as compared to the previous quarter, while flight departures increased 59 per cent quarter-on-quarter.
 
On its passenger business, the airline said it registered highest domestic load factor of 85.2 per cent.
 
SpiceXpress, the airline's logistics platform, reported a net profit of Rs 67 crore, with revenue increasing 17 per cent to Rs 584 crore from September quarter. "The company plans to significantly increase freighter capacity in the coming quarters," SpiceJet said in a release.
 
Commenting on the results, SpiceJet CMD Ajay Singh said, "Our performance would have been much better but was impacted by the unexpected delay in the return to service of the 737 MAX, rising fuel costs and certain exceptional adjustments. I am happy to say that there are renewed signs of recovery in the passenger segment and the logistics segment continues to remain strong."
 
The settlement with Boeing was a significant event during the quarter. The company received cash and non-cash accommodations in excess of the amounts due to lessors during the period of grounding of MAX aircraft. The settlement not only brought back into operations the grounded 737 MAX aircraft but also paves way for the induction of more efficient and younger MAX aircraft into SpiceJet's fleet, Singh added.
 
"The settlement also ensures the resumption of new aircraft deliveries from our order of 155 MAX aircraft," Singh said, adding that the airline is aiming for a stronger comeback in 2022 by utilising and expanding its 737 MAX fleet for better yield and flying experience, expanding network both domestically and internationally, among others.
 
On a consolidated basis, the airline reported a net profit of Rs 42.45 crore during the quarter as against a loss of Rs 66.78 crore in the year-ago quarter and Rs 570.56 crore in the September quarter.
 
Following the declaration of results, shares of SpiceJet were trading 6.16 per cent higher at Rs 62.90 during the afternoon trade on the BSE.

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