New Delhi: Budget carrier SpiceJet Ltd on Wednesday reported a consolidated net profit of ₹158.2 crore for the quarter ended June 30, down 20% from a consolidated net profit of ₹197.6 crore a year ago.
While the airline’s total income declined by 8.3% to ₹2,077.8 crore, its total expenses declined by more than 7% year-on-year to ₹1,919.6 crore.
In July, the Gurugram-based carrier reported its earnings for the December and March quarter of 2023-24 after a wait of more than six months. The airline reported a net loss of ₹299 crore in the December quarter and a net profit of ₹126.9 crore in the March quarter.
SpiceJet is embroiled in a legal battle over payment of dues to aircraft lessors, vendors and suppliers and is facing contempt notices from the Delhi High Court and the National Company Law Tribunal. The airline’s market share has declined sharply over the past five years in the domestic aviation market to 3.8% in June 2024 from 4.4% in June 2023 and 15.6% in June 2019.
Earlier this year, the airline laid off about 1,500 employees, or about 15% of its workforce, after reducing its fleet size by two-thirds due to lack of funding. The airline expects to save approximately ₹100 crore per year through these measures. The company’s total liabilities stood at around ₹11,252 crore at the end of the June quarter, compared to ₹11,690.7 crore as of March 31 and ₹12,420.2 crore as of December 31, 2023.
The company further said that it has initiated the process to raise ₹3,000 crore through qualified institutional placement (QIP), which is expected to be completed by the end of September.
The airline’s stock closed 2.5% lower at ₹55.03 on Wednesday. The 30-share BSE Sensex closed 149.85 points or 0.19% higher at 79,105.88.
