Picture credits: Wikipedia
Gurugram: SpiceJet has reported a net profit of INR 26 crore in Q3FY25, marking a significant recovery from a loss of INR 300 crore in the same quarter last year.
The airline’s total revenue surged to INR 1,651 crore, reflecting a 35% increase due to strong passenger demand, improved yields, and better operational efficiency.
The company’s EBITDA stood at INR 210 crore, rising substantially from INR 3 crore in Q3FY24. Excluding forex impact, EBITDA was INR 316 crore.
For the first time in ten years, SpiceJet has turned net worth positive, reaching INR 70 crore. Over the first nine months of FY25, its loss has reduced to INR 267 crore compared to INR 528 crore in the same period last year.
Ajay Singh, Chairman and Managing Director of SpiceJet, stated, “This quarter’s performance is a testament to SpiceJet’s resilience and our relentless focus on financial and operational recovery. For the first time in a decade, the company has turned net worth positive – an important milestone that underscores the success of our turnaround strategy. The past is behind us, and we are now firmly focused on building a stronger, more resilient future for SpiceJet.”
Debt Resolution and Credit Rating Upgrades
SpiceJet has made significant progress in resolving outstanding dues, successfully settling multiple disputes with aircraft and engine lessors amounting to INR 1,700 crore at a negotiated INR 1,233 crore, resulting in a financial benefit of INR 467 crore.
The airline has reached settlements with key aircraft lessors including Aircastle, EDC, Carlyle Aviation, Genesis, Cross Ocean, Echelon, BBAM, and Wilmington Trust. Engine lessors such as ELFC, Shannon Engineering, Willis, and MTU have also been part of these agreements.
As a result of its improved financial standing, Acuité upgraded SpiceJet’s credit rating by four notches to B+ with a stable outlook, while CARE Ratings assigned a BB- rating, reflecting enhanced liquidity and stronger turnaround prospects.
Strategic Investments and Operational Growth
SpiceJet successfully raised INR 3,000 crore via a Qualified Institutional Placement (QIP), attracting marquee investors. This capital infusion has been used for fleet expansion, settling dues, and enhancing operations. The airline has also cleared all outstanding statutory dues related to GST, TDS, and EPF, amounting to INR 601 crore.
SpiceJet has expanded its fleet by inducting 10 aircraft, including three that were previously grounded, and is actively working to restore seven Boeing 737 Max, four Boeing 737 NG, and six Q400 aircraft. The airline has partnered with StandardAero, a US-based engine MRO provider, to expedite the restoration of its grounded Max fleet.
Market Expansion and Network Growth
The airline has been actively growing its network, launching 60 new flights since the QIP, including 32 additions for the winter schedule. Key domestic routes include enhanced connectivity to Shivamogga, Chennai, Hyderabad, and Gorakhpur.
SpiceJet’s overall Passenger Load Factor (PLF) stood at an impressive 87% in Q3FY25, while total passenger revenue per available seat kilometer (RASK) was INR 4.57.
The company has also secured rights to operate Haj flights in Q1 FY26 from four key cities, further strengthening its international operations.
Future Outlook
Debojo Maharshi, Chief Business Officer at SpiceJet, stated, “Strong demand and effective network optimization are expected to drive a double-digit growth in RASKs during the fourth quarter of FY25 compared to the previous year. This anticipated increase will not only enhance our revenue streams but also significantly improve our cash flows, contributing to the overall financial health of the company and enabling us to invest in key initiatives.”
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