SpiceJet Q2 loss up; airline turns profitable in Q3 on lower fuel expenses

SpiceJet has been posting losses for the past six financial years. The airline was last in the green in 2017-18, when it recorded a consolidated net profit of Rs 557.4 crore

SpiceJet on Wednesday reported a consolidated net profit of ₹20.2 crore on year for the third quarter of financial year 2025 (Q3FY25) and a net loss of ₹458.2 crore in the second quarter results which were announced with a lag.

 

Under the Sebi rules, listed firms have to submit the quarterly results to stock exchanges within 45 days from the end of the quarter. They have the leeway to delay the financial results, but are required to give the reasons for it.

 

The airline’s consolidated net profit came in at ₹20.2 crore for Q3FY25 against a net loss of ₹299 crore in the same period a year ago as the low cost carrier claimed to have maneuvered a bunch of payment disputes and got a leg up from lower fuel expenses.

 

 

While in its delayed second quarter results, the firm had seen its consolidated net loss widen by 2 per cent year-on-year (Y-o-Y) to ₹458.2 crore.

 

The airline on Wednesday said it had successfully settled multiple disputes with eight aircraft lessors and four engine lessors over pending dues during this financial year, reducing outstanding claims from ₹1,700 crore to ₹1,233 crore, resulting in a financial benefit of ₹467 crore.

 

Moreover, the airline’s fuel expenses in the third quarter of the current financial year decreased by 46.9 per cent Y-o-Y to ₹415.2 crore.

 

As a result, its consolidated net loss for the first nine months of FY25 came in at ₹279.8 crore, an improvement from the ₹550.5 crore loss in the same period last year.

 

SpiceJet has been posting losses for the last six financial years. The budget airline was last in the green in 2017-18, when it had posted a consolidated net profit of ₹557.4 crore.

 

Ajay Singh, Chairman and Managing Director, SpiceJet, said, “We have significantly strengthened our balance sheet, resolved key disputes, and are continuously expanding our fleet. We are in discussions with OEMs (original equipment manufacturers) for advanced deliveries of aircraft and are actively exploring both organic and inorganic growth opportunities.”

 

However, the airline stated that due to its financial and operational challenges, it has been unable to operate its full aircraft fleet, with a significant number of aircraft grounded due to lack of maintenance. This underutilisation has impacted overall profitability during FY25.

 

According to the DGCA data, SpiceJet carried 5.5 per cent of domestic passengers in India in 2023. However, this share dropped to just 3.7 per cent in 2024.

 

In the current financial year, the airline continued to defer payments to aircraft lessors, engine lessors, vendors, and statutory authorities, while facing litigations regarding these issues. As on December 31, its retained earnings remained negative at ₹8,170 crore, with a negative net worth of ₹2,575 crore, SpiceJet said.

 

Additionally, its current liabilities exceed current assets by ₹3,925 crore.

 

During FY25, the company successfully raised ₹3,000 crore through a Qualified Institutional Placement (QIP), a process where shares are issued to institutional investors. On September 20, its Fund Raising Committee approved the allotment of shares at ₹61.6 per share, with a face value of ₹10 and a premium of ₹51.6 per share. As a result, the company’s total paid-up equity capital increased from ₹794.6 crore to ₹1,281.6 crore.

 

From the funds raised, ₹2,381 crore has been used for various expenses, including statutory dues, creditor settlements, aircraft maintenance and reactivation, new fleet additions, employee payments, airport dues, and general corporate purposes, the airline stated. The remaining amount has been temporarily invested until further use as of December 31.