SpiceJet Q2 Loss Rises, Turns Profitable in Q3 on Lower Fuel Costs

On Wednesday, SpiceJet announced a consolidated net profit of ₹ 20.2 crore on year for the Q3FY25, and a net loss of ₹ 458.2 in the quarter results announced with lag. 

The listed firm had to publish a quarterly filing to the stock exchange within 45 days from the end of a given quarter. The quarterly financials may have been delayed, but they had to justify it in the published papers. 

The carrier's consolidated net profit for the third quarter came in at ₹ 20.2 crores against a (2022 – 2023) year loss of ₹ 299 crores as the low-cost carrier bragged that they had managed a few payment dispute settlements and benefitted from cheaper fuel. The firm also saw… in the delayed second quarter results where the firm had clauses consolidated net loss over ₹ 458.2 crores.

The airline said on Wednesday that it has settled several disputes with eight aircraft lessors and four engine lessors concerning pending dues during this financial year, bringing outstanding claims down from ₹1,700 crore to ₹1,233 crore, which resulted in a benefit of ₹467 crore.In addition, the airline's fuel expenses in the third quarter of the current financial year were 46.9 percent lower year-on-year at ₹415.2 crore.

Consequently, its consolidated net loss for the first 9 months of FY25 was ₹279.8 crore, which is better than the ₹550.5 crore loss during the same period last year.

SpiceJet has remained in the loss zone for the last six financial years. The last time the low-cost carrier saw a profit was in 2017-18 when its consolidated net profit stood at ₹557.4 crore.

Ajay Singh, Chairman and Managing Director, SpiceJet, said, “We have enlarged our balance sheet strength, settled major disputes and are continuously growing our fleet. We have OEMs (Original Equipment Manufacturers) conversations for early deliveries of equipment and are proactively pursuing both organic and inorganic expansion activities.” However, the airline explained that for financial and operational reasons, it has been unable to utilize its entire aircraft fleet. The airline has also parked a number of aircraft due to lack of maintenance and operational services, which reduces profitabilitys in FY25. SpiceJet accounted for 5.5% of domestic passengers in India in 2023, based on DGCA data. That share reduced to just 3.7% in 2024. For the current financial year, the airline further delayed payments to aircraft engine suppliers, lessors, vendors and other statutory authorities, while litigating these issues. As on 31 December, negative retained earnings stand at ₹8,170 crore alongside a negative net worth of ₹2,575 Crore, SpiceJet reported. Also, current liabilities are greater than current assets by ₹3,925 Crore.

The firm raised ₹3,000 crores during FY25 through a Qualified Institutional Placement (QIP), which involves the issue and sale of shares to established institutional investors. On September 20, the company’s Fund Raising Committee sanctioned the shares allotment at ₹61.6 per share, which included a face value of ₹10 and a premium of ₹51.6 per share. Consequently, the company's paid-up equity capital was increased, resulting in a total of ₹1,281.6 crores from ₹794.6 crores.

The airline claims that out of the funds raised, ₹2,381 crores have been spent on critical operational expenses, statutory dues, settlement of creditors, aircraft maintenance and reactivation, addition of new fleet, employee payments, airport dues, and general corporate expenses. As of December 31, the balance of the cash was placed on temporary investment until further instructions are determine.