BENGALURU (Reuters) – Indian budget carrier SpiceJet reported a drop in first-quarter profit on Wednesday as it carried fewer passengers amid legal and financial troubles.
The company reported a standalone profit of Rs 1.5 billion ($17.9 million) for the quarter ended June 30, down 26.7% from a year ago.
This excludes the business of its subsidiaries including SpiceXpress and Logistics.
SpiceJet has been struggling to expand its operations as some lessors turned to the courts to settle unpaid debts and also sought deregistration of their planes by the country’s aviation regulator.
This also cost the company market share, which fell to 4.2% in April-June from 5.2% last year.
The company is trying to restore full operations and increase capacity, including reaching agreements with some landlords and raising funds. It recently announced a $360 million fundraising effort.
In March, the airline had an operational fleet of 39 aircraft, mostly Boeing 737s and some Bombardier Q400s.
The number of passengers carried by SpiceJet in the reported quarter fell 17% from a year ago to around 1.7 million people, according to data from India’s aviation regulator, a smaller drop than that seen during the previous fiscal year.
Its total operating revenue fell 15.3% to Rs 16,960 crore, its smallest drop since the quarter ended March 31, 2023.
SpiceJet reported its third- and fourth-quarter results in tandem in July, after delaying them for unspecified reasons. It reported a loss in the third quarter, though its fourth-quarter profit was boosted by a deal with a financial agency.
It did not report cash flow for the June quarter. Its cash and cash equivalents stood at Rs 1,870 crore at the end of March, while its cash provided by operating activities was negative at Rs 6,130 crore.
(1 dollar = 83.9150 Indian rupees)
(Reporting by Varun Hebbalalu in Bengaluru; editing by Varun HK)
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