SpiceJet's profit grows by 26pc to INR 150cr in Q1
Gurugram : SpiceJet recently announced its second consecutive profitable quarter. The carrier reported a net profit of INR 150 crore for the quarter ending June 2024, reflecting a 26 per cent increase over the Q4 FY2024.
The airline achieved an operating profit of INR 393 Crore, underpinned by a solid EBITDA of INR 401 crore, reflecting an improvement from INR 310 crore in Q4 FY2024. SpiceJet also reported an EBITDAR of INR 650 crore, up from INR 616 crore over Q4 FY2024.
On the development, Ajay Singh, Chairman and Managing Director, SpiceJet, said, "We are pleased to report a profit of INR 150 crore for Q1 FY 2024-25, which underscores our determination to navigate through uncertainties and is a testament to the hard work and dedication of our team. We believe in the resilience of our business model and remain committed to providing our customers with the best flying experience possible."
The airline also continued to lead the industry with the highest domestic load factor of 91 per cent in Q1, said a release.
In a major move to further strengthen its financial position and support its growth plans, SpiceJet has already initiated the process of raising INR 3,000 crore through a Qualified Institutional Placement (QIP), which is expected to be completed by the end of September 2024.
The infusion of funds will be pivotal in enabling the airline to expand and unground its fleet, enhance operational capabilities, settle liabilities and improve its overall market competitiveness. These funds will stabilise the overall operations and allow expansion.
"The upcoming INR 3,000 crore fundraise through QIP will be instrumental in reinforcing our financial foundation and positioning SpiceJet for sustained success," said Ajay.
SpiceJet remains focused on its long-term strategy of expanding its domestic and international network, investing in newer, more fuel-efficient aircraft, and leveraging technology to drive innovation and efficiency across its operations, added the release.
SpiceJet is an IATA-IOSA certified airline that operates a fleet of Boeing 737s and Q-400s. The majority of the airline's fleet offers SpiceMax, the most spacious economy class seating in India, concluded the release.
