SpiceJet reports Rs 23 crore profit in Q3 - Times of India

SpiceJet reports Rs 23 crore profit in Q3 – Times of India

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NEW DELHI: SpiceJet has posted a profit of Rs 23 crore in the October-December, 2021, period against a loss of Rs 57 crore crore in same period last year. The low cost carrier says its total income this Q3 — that saw its Boeing 737 Max take to the skies again — grew to Rs 2,679.6 crore, up 42% from Rs 1,875.7 crore in same period last fiscal. Its scrip was trading 8% higher on BSE Tuesday. The Q3 profit this fiscal of the only other listed (operational) airline, IndiGo, was Rs 130 crore.
SpiceJet CMD Ajay Singh said: “I am happy that SpiceJet reported a profit in Q3 FY2022 driven by excellent logistics operations, rebound in passenger traffic and various accommodations from aircraft manufacturer and lessors…. Our performance would have been much better but was impacted by the unexpected delay in the return to service of the 737 MAX, rising fuel costs and certain exceptional adjustments… there are renewed signs of recovery in the passenger segment and the logistics segment continues to remain strong. ”
The airline’s logistics platform SpiceXpress reported 17% increase in revenue to Rs 584 crore this Q3 and Singh plans to “significantly increase freighter capacity in the coming quarters.”
“The settlement with Boeing was a significant event during the quarter. As expected, the company received cash and non-cash accommodations significantly in excess of the amounts due to lessors during the period of grounding of MAX aircraft. The settlement not only brought back into operations the grounded 737 MAX aircraft but also paves way for the induction of more efficient and younger MAX aircraft into SpiceJet’s fleet. The settlement also ensures the resumption of new aircraft deliveries from our order of 155 MAX aircraft,” the airline said in a statement.



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