India's SpiceJet posts highest profit in four years on lower costs (updated)

Spicejet

14/08/2023 08:01

(Recasts paragraph 1 to reflect milestone, share move; adds
details throughout)
       BENGALURU, Aug 14 (Reuters) - Indian budget carrier
SpiceJet  SPJT.BO  on Monday reported its highest quarterly
profit in four years, as a sharp drop in expenses due to fewer
flights operated more than offset a fall in revenue – sending
shares up 6%.
    The company's profit for the first quarter ended June 30
came in at 2.05 billion rupees ($24.7 million), from a loss of
7.89 billion rupees a year ago.
    The airline also reported a profit of 168.6 million rupees
for the quarter ended March 31, compared to a loss of 4.58
billion rupees a year before.
    SpiceJet is reporting quarterly results for the first time
since February, having delayed releasing its March-quarter
numbers as a key member of its audit committee was ill.
    The airline has been scrambling to raise funds and restore
operations for about a fourth of its fleet, which has been
grounded amid battles with its lessors over payments, as
competition heats up fiercely in the sector.
    Top shareholder Ajay Singh said last month he would infuse 5
billion rupees into the troubled carrier, as it looks to return
to full operations.
    In February, aircraft lessor Carlyle Aviation Partners
acquired a 7.5% stake in the company's cargo unit SpiceXpress.
        Additionally, top airline IndiGo  INGL.NS  and new
entrant Akasa Air capitalised on troubles at SpiceJet and
GoFirst, eating into their market shares.
    SpiceJet's market share stood at 4.4% at the end of June,
latest data from the aviation regulator showed, compared to 9.5%
last year.
    Overall first-quarter revenue was down 22% at 18.44 billion
rupees, while expenses fell 37% as fuel costs nearly halved and
foreign exchange losses narrowed by 99% due to the airline
operating fewer flights.
    SpiceJet's load factor, or the passenger carrying capacity
being utilised, improved to 90% at June-end from 86.4% last
year.

($1 = 82.9475 Indian rupees)

 (Reporting by Chris Thomas and Nandan Mandayam in Bengaluru;
Editing by Varun H K)
 ((chris.thomas@thomsonreuters.com; +91 80 6210 0487;))