Spicejet (Photo: Wikipedia)
SpiceJet’s consolidated net profit fell 20 per cent year-on-year to Rs 158.1 crore in the first quarter of 2024-25 (FY25) as the airline scaled back its flights due to financial difficulties.
SpiceJet’s services declined 30.3 per cent year-on-year to 882 flights per week in August, according to aviation analytics firm Cirium.
The airline said it has initiated the process of raising Rs 3,000 crore through a qualified institutional placement (QIP) process, which is expected to be completed by the end of next month.
Ajay Singh, Chairman and Managing Director, SpiceJet, said, “The upcoming fundraise of Rs 3,000 crore through QIP will be instrumental in strengthening our financial foundation and positioning SpiceJet for sustained success. We believe in the resilience of our business model and remain committed to providing our customers with the best possible flying experience.” SpiceJet’s total revenue declined 8.3 per cent year-on-year to Rs 2,077.7 crore in the first quarter of 2024-25.
Earlier this year, the airline’s shareholders had approved the issue of shares and warrants to raise Rs 2,241 crore, of which the airline could raise Rs 1,060 crore.
Last month, the airline reported a consolidated net loss of Rs 418.3 crore for 2023-24. This marks the sixth consecutive year in which the airline has posted losses.
The budget carrier was last in the black in 2017-18, when it posted a consolidated net profit of Rs 557.4 crore. The airline said, “The losses in the last few years have been primarily due to adjustments on account of implementation of Ind AS 116 (a new accounting standard that came into effect in 2019), adverse foreign exchange rates, operational disruptions during COVID-19, followed by sub-optimal operations due to liquidity constraints faced by the group.”
For the past few quarters, SpiceJet has been grappling with a cash crunch amid multiple legal battles over unpaid debts to aircraft lessors, engine lessors, lenders and former promoter Kalanithi Maran.
First published: August 14, 2024 | 19:37 IS
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.