Indian budget carrier SpiceJet reported a drop in first-quarter profit on Wednesday, as it flew fewer passengers amid legal and financial troubles. The company reported a standalone profit of 1.50 billion rupees (USD 17.9 million) for the quarter ended June 30, down 26.7 per cent from last year.
This excludes the business of its subsidiaries, including SpiceXpress and Logistics. SpiceJet has been struggling to scale up operations as some lessors took it to court to settle unpaid dues, and also requested that the country’s aviation regulator de-register their planes. This also cost the company market share, which fell to 4.2 per cent in April-June from 5.2 per cent last year.
The company is making attempts to restore full operations and boost capacity, including reaching settlements with some lessors and raising funds. It most recently announced a fundraise of USD 360 million. As of March, the airline had an operational fleet of 39 aircraft, mostly Boeing 737s and a few Bombardier Q400 jets.
Mumbai airport operator MIAL warned of possible SpiceJet flight disruptions but later retracted the advisory. The issue, related to a minor financial matter, was resolved swiftly in collaboration with the airline. SpiceJet, struggling with liquidity issues and delayed salaries, reassured passengers that operations at Mumbai airport are normal.
The number of passengers flown by SpiceJet in the reporting quarter fell 17 per cent from last year to about 1.7 million people, according to data from India’s aviation regulator – a smaller drop than that seen throughout the previous fiscal year. Its total revenue from operations fell 15.3 per cent to 16.96 billion rupees, its smallest drop since the quarter ended March 31, 2023. SpiceJet reported its third- and fourth-quarter results together in July after delaying them for unspecified reasons. It reported a third-quarter loss, although its fourth-quarter profit was boosted by a settlement with a financing agency. It did not report cash flow for the June-quarter. Its cash and cash equivalents stood at 1.87 billion rupees as of end-March, while its cash from operational activities was negative 6.13 billion rupees.
