SpiceJet consolidated net profit declined 19.9 per cent to ₹158.1 crore in first quarter FY 2025 on a year-on-year basis due to lower revenue.
In the same period last year, the airline had posted ₹197.6 crore net profit.
Revenue from operations declined 14.7 per cent on a y-o-y basis to ₹1,708 crore with the shrinkage in the airline’s fleet and flights. The airline has also delayed employees salaries and vendor payments.
A 40 per cent increase in other income to ₹369 crore helped improve the result. The other income pertained to settlements entered by the company with Export Development Canada (export credit agency) and certain aircraft lessors and the company. The company has recorded gains arising out of these settlements as other income.
SpiceJet said it has initiated the process of raising ₹3,000 crore through a qualified institutional placement (QIP), which is expected to be completed by the end of September end. This fresh infusion of funds will be pivotal in enabling the airline to expand its fleet, enhance operational capabilities, settle liabilities and improve its overall market competitiveness.
“We believe in the resilience of our business model and remain committed to providing our customers with the best flying experience possible,” airline’s Chairman Ajay Singh said in a statement.