SpiceJet's Q2 Financial Turnaround: Consolidated Loss Shrinks to ₹446.09 Crore

SpiceJet revealed a consolidated loss of ₹446.09 crore for the quarter ending September, reflecting a noteworthy reduction in losses. The crisis-affected carrier achieved this positive outcome by implementing stringent cost-cutting measures across its operations, as detailed in the latest regulatory filing on Tuesday.

The consolidated results encompass the financial performance of nine subsidiaries. On a consolidated basis, SpiceJet recorded a total comprehensive loss of ₹446.09 crore in the latest September quarter, a marked improvement compared to the ₹829.98 crore loss reported in the corresponding period last year.

The total income for the quarter was reported at ₹1,725.81 crore, down from ₹2,101.79 crore in the same period a year ago. Concurrently, total expenses witnessed a substantial decrease from ₹2,935.02 crore to ₹2,175.24 crore during the latest September quarter, underscoring the airline's commitment to financial prudence.

In a separate release, SpiceJet announced a narrowed net loss of ₹428 crore for the three months ending September this year, compared to a net loss of ₹835 crore in the corresponding period last year. The airline, however, did not specify whether the reported loss is on a standalone or a consolidated basis.

During the 2023 September quarter, SpiceJet successfully settled dues with aircraft lessor Castle Lake and repaid a ₹100 crore loan obtained from City Union Bank. Additionally, the airline engaged in a debt-to-equity conversion with Carlyle Aviation Partners, issuing over 4.81 crore equity shares at ₹48 per share, leading to a significant debt reduction of over ₹230 crore.

SpiceJet's Chairman and Managing Director, Ajay Singh, acknowledged the historical challenges faced by the aviation industry during the July-September quarter, exacerbated this year by elevated fuel prices impacting operational costs. Singh emphasized that despite these challenges, SpiceJet has proactively implemented cost-saving measures and remains focused on adapting to the dynamic market conditions.

Investors and industry observers are likely to closely analyze SpiceJet's financial results, appreciating the airline's strategic efforts to navigate challenges and enhance its financial stability in a demanding market.

PTI