SpiceJet reported a net profit of INR 1.9bn for the second quarter April-June 2023 (Q2) and a net loss of INR 0.62bn for the March quarter of FY23. The airline announced the earnings for the two quarters together.
The airline noted that fall in the Aviation Turbine Fuel (ATF) seen during April-June 2023, directly contributed to its profit. The airline's Aviation turbine fuel cost halved when compared on year during the quarter.
ATF prices during April-June fell to around Rs 89,303 per Kilo Litre in June 2023, when compared to Rs 1,41,233/kl in the same period last year.
SpiceJet had reported a profit of INR 1.1bn in the third quarter of FY23, a loss of INR 4.85bn in the quarter ended March 2021-22, and a loss of INR 7.89bn in the June quarter of FY23.
The total revenue from operations for the January-March 2023 quarter came in at INR 21.45bn higher than INR 18.75 reported in the year-ago quarter. The revenue for the Q1 of FY24 was at INR 20.03bn, 18.5% lower from INR 24.57bn in the same period a year ago.
"I firmly believe in the potential of our airline, and I am pleased to have contributed to its growth by infusing INR 500 Crore into the Company. This infusion will help bolster our efforts in reviving our grounded planes, for which we have been working tirelessly, strengthening our fleet and expanding our cargo operations," said chairman and managing director Ajay Singh in a statement.
SpiceJet was originally going to report its Q4, FY2023 and Q1, FY2024 results on August 11 but deferred the release of the financial results till August 14, the airline said in a regulatory filing.
“The airline said that its passenger revenue per available seat-kilometer (RASK) rose by 26% in April-June from the year-ago quarter due to an increase in yield by 22% on year and a 4 percent on year rise in load factor during the quarter,” SpiceJet said in a statement.
The airline has incurred an exceptional adjustment of INR 2.632bn on account of a settlement with Boeing for the quarter ended June 30, 2023, which was significantly higher than the INR 0.171bn received in April-June 2022.
“With the Boeing settlement, the company received cash and non‐cash accommodations in excess of the amounts due to lessors during the period of grounding of MAX aircraft,” SpiceJet said.
In the January-March 2023 period, the exception on account of a settlement with Boeing fell to INR 3.535bn when compared to the INR505.5bn received in the same period a year ago.
The airlines’ earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at INR 5.25bn for the quarter ended June 2023, when compared to an operating loss of INR 3.93bn in the June quarter last year.
The earnings before interest, taxes, depreciation, amortisation and rent (EBITDAR) also came in at INR 6.45bn in Apr-Jun, when compared to an EBITDAR loss of INR 3.49bn in the same period a year ago.
"In terms of operational parameters, SpiceJet had the highest passenger load factor amongst all airlines in the country. The average domestic load factor was 92% for the March 2023 quarter and 88% for FY2023. SpiceJet had the highest load factor of 90% in Q1, FY2024.," the airline said.
Its employee costs in Q1, FY24 fell slightly to INR 2.135bn when compared to INR 2,188bn a year ago. The airline's employee cost during Q4, FY23 rose to INR 2.21bn when compared to INR 1.97bn for the same period a year ago.
Going ahead, the airline is planning to hike the salary of its captains to Rs 7.5 lakh per month for flying 75 hours and revive about 25 grounded aircraft. “About INR 4bn needed for the revival of its aircraft will be drawn from the government’s Emergency Credit Line Guarantee Scheme (ECLGS) and better cash accruals,” the release added.