SpiceJet has reported a net profit of Rs 23.28 crore for the quarter ending December 31, 2021.
The airline had an exceptional adjustment with Boeing of Rs 77.46 crore on account of settlement.
The airline recorded a 74 percent rise in the third quarter revenue to Rs 2,679 crore as against Rs 1,539 crore in the previous quarter as it added more destinations and newer aircraft to its fleet. For previous quarter, operating expenses were Rs 2,100 crore as against Rs 2,579 crore for the current quarter.
On an EBITDA basis, SpiceJet reported a profit of INR 511 Cr as against a loss of RS 106 crore for the last quarter. On an EBITDAR basis, the Company reported a profit of Rs 644 crore as against a profit of Rs 66 crore for the last quarter.
SpiceXpress, the Company’s logistics platform reported increased revenue of Rs 584 crore for the reported quarter as compared to Rs 498 crore in the last quarter, a jump of 17 percent. The Company plans to significantly increase freighter capacity in the coming quarters.
Rebound in passenger traffic
Ajay Singh, Chairman and Managing Director, SpiceJet, said, “I am happy that SpiceJet reported a profit in Q3 FY2022 driven by excellent logistics operations, rebound in passenger traffic and various accommodations from aircraft manufacturer and lessors.
“The passenger industry witnessed the much-needed turnaround in third quarter as COVID cases ebbed in the first half of the quarter, travel picked up significantly and there was finally hope that the worst was behind us. However, that changed by the second half of December as Omicron halted that recovery. 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. ”
Settlement with Boeing
The settlement with Boeing was a significant event during the quarter. As expected, the Company received cash and non-cash accommodations significantly 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, it said in a statement.
The settlement also ensures the resumption of new aircraft deliveries from our order of 155 MAX aircraft. SpiceJet celebrated the return to service of the 737 MAX with a special flight from New Delhi to Gwalior.
On operational parameters, SpiceJet had the best passenger load factor amongst all airlines in the country during the quarter. The average domestic load factor for the quarter was 85.2 percent.
SpiceJet launched 40 new routes to strengthen its domestic network besides adding Kushinagar as its latest UDAN destination. It also became the first and only airline in India to operate non-stop flights on Delhi-Tirupati sector.
The airline is now aiming for a stronger comeback in 2022 by utilising and expanding its 737 MAX fleet for better yield and flying experience, launching new customer centric services, optimising daily operations based on IT and expanding network both domestically and internationally.
On the BSE, shares of SpiceJet were up 7.01 percent or Rs 4.65 at Rs 63.45 a piece at 2.45 PM.
