SpiceJet Q3FY22 Results: Records consolidated profit of Rs 42.45 crore YoY

Domestic airline SpiceJet today reported a consolidated net profit of Rs 42.45 crore for the quarter ended December 31, 2021 (Q3FY22). It had reported a loss of Rs 66.77 crore in the same quarter of the previous financial year (Q3FY21).

The airline's total operating revenue rose 33.75 per cent to Rs 2,261.65 crore in the quarter under consideration against Rs 1,691.64 crore posted in the same quarter of the previous financial year.

The low-cost carrier's earnings before interest, taxes, depreciation and amortization (EBITDA) dropped 52.42 per cent year-on-year to Rs 116.42 crore as compared to Rs 244.73 crore posted in the same quarter last year. The company's EBITDA margin in December 2021 quarter stood at 5.1 per cent, against 14.4 per cent posted in Q3FY21.

Ajay Singh, Chairman and Managing Director, SpiceJet, said, "I am happy that SpiceJet reported a profit in Q3 FY2022 driven by excellent logistics operations, rebound in passenger traffic and various accommodations from aircraft manufacturer and lessors."

He further added, "The passenger industry witnessed the much-needed turnaround in the third quarter as Covid cases ebbed in the first half of the quarter, travel picked up significantly and there was finally hope that the worst was behind us. However, that changed by the second half of December as Omicron halted that recovery. Our performance would have been much better but was impacted by the unexpected delay in the return to service of the 737 MAX, rising fuel costs and certain exceptional adjustments. I am happy to say that there are renewed signs of recovery in the passenger segment and the logistics segment continues to remain strong."

SpiceXpress, the Company's logistics platform, continued on its growth trajectory reporting increased revenue of Rs 584 Cr for the reported quarter as compared to Rs 498 crore in the last quarter, a jump of 17 per cent. The company plans to significantly increase freighter capacity in the coming quarters.

The company in a statement said, the settlement with Boeing was a significant event during the quarter. As expected, the Company received cash and non‐cash accommodations in excess of the amounts due to lessors during the period of grounding of MAX aircraft. The settlement not only brought back into operations the grounded 737 MAX aircraft but also paves way for the induction of more efficient and younger MAX aircraft into SpiceJet's fleet. The settlement also ensures the resumption of new aircraft deliveries from our order of 155 MAX aircraft. SpiceJet celebrated the return to service of the 737 MAX with a special flight from New Delhi to Gwalior.

On operational parameters, SpiceJet had the best passenger load factor amongst all airlines in the country during the quarter. The average domestic load factor for the quarter was 85.2 per cent.

SpiceJet launched 40 new routes to strengthen its domestic network besides adding Kushinagar as its latest UDAN destination. It also became the first and only airline in India to operate non‐stop flights on the Delhi‐Tirupati sector.

In an industry-first initiative, the airline-built Pilot Docs, a digital library to eliminate the need to carry large amounts of paper manuals on the aircraft, resulting in operational efficiency. The global airline association, APEX recognized SpiceJet for its Cabin Crew app in the 'Newcomer of the Yearʹ category. Besides, SpiceJet also became the first Indian airline to be awarded the Diamond status from APEX Health Safety for ensuring the highest standards of cleanliness and sanitization.

The airline is now aiming for a stronger comeback in 2022 by utilising and expanding its 737 MAX fleet for better yield and flying experience, launching new customer-centric services, optimising daily operations based on IT and expanding network both domestically and internationally.