SpiceJet reports Rs 238 Cr loss in Q1 as costs, weak demand weigh on earnings

The budget carrier slipped into losses in the June quarter, citing grounded aircraft, supply chain issues, and subdued leisure travel, even as its net worth turned positive year-on-year.

New Delhi: Flying into the red, SpiceJet on Friday reported a net loss of Rs 238 crore for the three months ended June, saying expenses related to grounded aircraft and subdued leisure travel demand impacted the financials.

The budget carrier, which had been facing multiple headwinds, raked in a total income of Rs 1,190.56 crore in the first quarter of the current financial year. The same stood at Rs 2,067.21 crore in the same period a year ago, according to a regulatory filing.

In a statement, SpiceJet said the results were significantly impacted by the geopolitical situation with a neighbouring country and airspace restrictions in key markets, which led to subdued leisure travel demand.

"The delay in returning grounded aircraft to service, owing to global supply chain disruptions and engine overhaul challenges, further compounded the situation," it added.

The airline recorded a net loss of Rs 238 crore in the June quarter, whereas it had a profit of Rs 150 crore in the year-ago period.

"This quarter's results reflect the extraordinary challenges faced by the aviation industry, including geopolitical turbulence, restricted air routes, and supply chain disruptions," SpiceJet Chairman and Managing Director Ajay Singh said.

He also said the airline is taking decisive steps to enhance fleet reliability, reduce costs, and expand the network.

Among other efforts, the airline is having discussions for taking aircraft on damp-lease arrangements to strengthen its network reliability.

Generally, in a damp lease, the lessor provides the aircraft, along with the maintenance, but not the crew and insurance.

According to the statement, net worth rose to Rs 446 crore in the latest June quarter compared to a deficit of Rs 2,398 crore in the year-ago period.

In July, SpiceJet had a domestic market share of 2 per cent, as per official data.