Synopsis
SpiceJet reported a 36% decline in revenue for Q3 FY25, with losses increasing to Rs 441 crore in Q2. Despite the challenges, the airline achieved a net profit of Rs 25 crore in Q3, marking a turnaround from the previous year's losses. The company aims for a stronger future following its net worth positive milestone.Key Takeaways
- SpiceJet revenue fell to Rs 1,178.7 crore in Q3 FY25.
- Net loss for Q2 FY25 widened to Rs 441.7 crore.
- Passenger numbers dropped significantly in both quarters.
- Achieved a net profit of nearly Rs 25 crore in Q3.
- Company's net worth turned positive for the first time in a decade.
New Delhi, Feb 26 (NationPress) The low-cost airline SpiceJet has experienced a significant year-on-year drop in its revenue for the October-December quarter (Q3 FY25), falling to Rs 1,178.7 crore from Rs 1,850.4 crore in the same period last year (Q3 FY24).
This revenue decline occurred despite an uptick in domestic travel demand in India, which has been on the rise for the last eight quarters.
During a board meeting on February 25, the airline disclosed its earnings for both Q2 and Q3 FY25, revealing a widening net loss of Rs 441.7 crore for the July-September quarter (Q2 FY25).
In Q2 FY24, the net loss was recorded at Rs 431.54 crore.
In Q2, the airline's revenue dropped sharply to Rs 817.12 crore from Rs 1,425.29 crore in the same quarter the previous year. The exchange filing indicated a notable decrease in both market share and passenger numbers.
In Q2, SpiceJet transported 9.69 lakh passengers, achieving a market share of 2.5%, compared to 15.90 lakh passengers and a market share of 4.3% in the same period last year.
For Q3, the airline transported 12.67 lakh passengers, securing a 3% market share, down from 5.6% the previous year when it serviced 21.84 lakh passengers.
Despite these challenges, the airline managed to achieve a net profit of nearly Rs 25 crore in Q3, marking a significant turnaround from the nearly Rs 300 crore loss recorded in the same period last fiscal year.
SpiceJet Chairman and Managing Director, Ajay Singh, stated, "For the first time in a decade, the company has turned net worth positive - a crucial milestone demonstrating the effectiveness of our turnaround strategy."
He emphasized that the past is behind the company, which is now concentrated on creating a stronger and more resilient future for SpiceJet.
Total income for Q3 increased to Rs 2,156.6 crore, up from Rs 1,654.2 crore in the same period last year.
