Budget carrier SpiceJet reported its highest quarterly profit in four years at Rs 205 crore in the June quarter as a sharp drop in expenses due to fewer flights being operated more than offset a fall in revenue.
The airline, which is facing multiple headwinds, had recorded a net loss of Rs 789 crore in the year-ago period.
The airline’s stock climbed 6.72 per cent to settle at Rs 33.67 on the BSE. During the day, it rallied 11.56 per cent to Rs 35.20.
In a release, SpiceJet said the profit of Rs 205 crore was on account of a “strong demand for air travel in India”.
“Total operating revenue for the reported quarter was Rs 2,002 crore against Rs 2,457 crore in the same quarter of the previous year,” it said.
In the first quarter of this fiscal, operating expenses declined to Rs 1,291 crore from Rs 2,072 crore a year ago.
A fall in aviation turbine fuel (ATF) prices during April-June 2023 directly contributed to SpiceJet reporting a profit during the quarter. The airline’s fuel cost halved when compared with the previous corresponding quarter.
ATF prices during April-June fell to around Rs 89,303 per kilo litre in June compared with Rs 1,41,233/kl in the same period last year.
SpiceJet chairman and managing director Ajay Singh said that despite facing multiple challenges, the airline posted a profit in the first quarter of the current financial year.
“I am pleased to have contributed to its growth by infusing Rs 500 crore into the company. This infusion will help bolster our efforts in reviving our grounded planes,” he said.