SpiceJet posted a loss of ₹449.43 crore, a substantial improvement from the previous year’s ₹833.23 crore during the corresponding quarter. Despite a 29 per cent decline in revenue at ₹1,347.52 crore, SpiceJet’s strategic cost-saving measures became evident as total expenses dropped to ₹21,574.10 crore from ₹29,416.06 crore in the year-ago period.

The company attributed the reduced expenses to lower airport charges and aircraft maintenance costs. SpiceJet, in its continuous pursuit of growth, launched 13 new routes during the quarter, maintaining its market leadership. Ajay Singh, Chairman and Managing Director, said: “The July-September quarter has historically been a challenging period for the aviation industry. This year, the challenges were further compounded by elevated fuel prices, impacting operational costs. SpiceJet, however, has been proactive in implementing cost-saving measures and remains focussed on adapting to the dynamic market conditions.”

financial stress

The financial stress on SpiceJet has been evident, with the company reporting a loss of ₹1,516 crore in the first three quarters of the previous financial year, managing to post a profit in just one quarter. 

“In the face of these challenges, SpiceJet emphasises its commitment to operational efficiency, customer service, and strategic decision-making to navigate the complexities of the aviation landscape,” said Singh. He highlighted the airline’s proactive stance in implementing cost-saving measures and its focus on adapting to dynamic market conditions.

To fortify its financial position, the board of SpiceJet approved raising ₹2,250 crore through the issuance of equity shares and warrants. The airline plans to issue 32.08 crore equity shares at a discounted price of ₹50 per share, raising ₹1,600 crore. Additionally, the board greenlit the issuance of 13 crore convertible warrants at ₹50 per warrant, totalling ₹650 crore.

“The fresh infusion of over ₹2,250 crore in the company will bring renewed energy to adapt to the changing circumstances,” added Singh.