India’s budget airline SpiceJet has made a strong financial comeback, reporting a standalone net profit of ₹25 crore for the third quarter of the current financial year (Q3FY25). This marks a significant turnaround for the airline, which had recorded a net loss of ₹301.5 crore in the same quarter of the previous fiscal year.
The airline’s return to profitability comes after a challenging period marked by financial struggles. In the preceding quarter (Q2FY25), SpiceJet had reported a loss of ₹441.7 crore, indicating that the latest results reflect a notable recovery in its financial performance.
The company disclosed these figures in an exchange filing on February 26, highlighting the improvement in its earnings. The shift from deep losses to profitability suggests that cost management strategies, operational efficiencies, or changes in market conditions may have contributed to the positive results.
While the broader aviation sector continues to navigate challenges such as fluctuating fuel prices and competitive pressures, SpiceJet’s latest quarterly performance signals a step in the right direction for the airline as it works toward financial stability.
SpiceJet, one of India’s leading budget airlines, has reported a profit for the December quarter of the current financial year (Q3FY25), marking a notable turnaround. However, the airline witnessed a substantial decline in its revenue from operations.
For Q3FY25, SpiceJet’s revenue from operations stood at ₹1,140.7 crore, representing a 35% drop from ₹1,756.6 crore recorded in the same quarter last year. The company’s revenue from operations for the September quarter of the ongoing fiscal year (Q2FY25) had been even lower at ₹817.1 crore, indicating some sequential improvement.
Despite the revenue decline, the airline’s profitability was supported by a significant increase in its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). EBITDA for the December quarter surged to ₹210 crore, a sharp rise from ₹3 crore reported in the corresponding quarter of the previous fiscal year. When excluding foreign exchange (forex) impacts, SpiceJet’s EBITDA stood at ₹316 crore, compared to ₹30 crore in the same quarter last year.
A major milestone for the airline in Q3FY25 was achieving a positive net worth of ₹70 crore—an achievement that SpiceJet claims is the first time in a decade that its net worth has turned positive. This marks a crucial step in the company’s financial recovery after years of financial turbulence.
Commenting on the performance, Ajay Singh, Chairman and Managing Director of SpiceJet, expressed confidence in the airline’s ongoing recovery. He stated, “This quarter’s performance is a testament to SpiceJet’s resilience and our relentless focus on financial and operational recovery. For the first time in a decade, the company has turned net worth positive—an important milestone that underscores the success of our turnaround strategy. The past is behind us, and we are now firmly focused on building a stronger, more resilient future for SpiceJet.”
The airline’s latest results suggest that cost-cutting measures, operational efficiencies, or strategic financial restructuring may have played a role in its improved profitability. While revenue challenges persist, the company appears to be focusing on long-term stability and growth.
SpiceJet’s ₹3,000 Crore QIP Strengthens Financial Position, Aiding Growth and Fleet Expansion
SpiceJet has bolstered its financial standing through a successful ₹3,000 crore Qualified Institutional Placement (QIP), which has played a crucial role in resolving long-standing liabilities, facilitating fleet expansion, and accelerating operational growth. The airline stated that this capital infusion has significantly improved its balance sheet, enabling it to address major financial obligations while positioning itself for sustained growth in the highly competitive aviation sector.
Ajay Singh, Chairman and Managing Director of SpiceJet, highlighted the positive impact of the QIP and the confidence shown by global investors. He stated, “The overwhelming response to our QIP and the trust of global investors, combined with operational resilience and financial discipline, has set the stage for sustained growth. We have significantly strengthened our balance sheet, resolved key disputes, and are continuously expanding our fleet. We are in discussions with OEMs for advanced deliveries of aircraft and are actively exploring both organic and inorganic growth opportunities.”
As part of its expansion efforts, the airline is engaging with Original Equipment Manufacturers (OEMs) to secure earlier aircraft deliveries, which could help improve operational efficiency and enhance its market presence. Additionally, SpiceJet is exploring various avenues for growth, including both organic expansion—such as increasing routes and services—and potential inorganic opportunities, which may involve partnerships, acquisitions, or strategic collaborations.
During the December quarter, the airline reported a passenger load factor (PLF) of 87%. PLF is a critical performance indicator in the aviation industry that measures how effectively an airline fills its available seating capacity. A higher PLF suggests strong passenger demand and efficient utilization of aircraft, reflecting the airline’s ability to attract and retain travelers despite the challenges faced by the industry.
With a strengthened financial foundation and a focus on expansion, SpiceJet aims to build a more resilient and competitive business, positioning itself for long-term stability and growth in the Indian aviation sector.
SpiceJet has reported a Passenger Revenue per Available Seat Kilometer (RASK) of ₹4.57 for the December quarter of FY25. RASK is a key performance metric in the airline industry, reflecting the revenue generated per available seat per kilometer flown. It serves as an important indicator of an airline’s ability to optimize seat utilization and pricing strategies.
Looking ahead, SpiceJet anticipates a strong increase in RASK during the fourth quarter of FY25, driven by rising passenger demand and strategic network optimization. Debojo Maharshi, Chief Business Officer of SpiceJet, expressed optimism about the company’s revenue outlook, stating, “Strong demand and effective network optimization are expected to drive double-digit growth in RASKs during the fourth quarter of FY25 compared to the previous year. This anticipated increase will not only enhance our revenue streams but also significantly improve our cash flows, contributing to the overall financial health of the company and enabling us to invest in key initiatives.”
This expected improvement in RASK suggests that SpiceJet is focusing on optimizing its route network, improving aircraft utilization, and potentially adjusting pricing strategies to maximize revenue per available seat. A higher RASK typically translates into stronger revenue generation, which can enhance cash flows and support ongoing investments in operational growth, fleet expansion, and service improvements.
As the airline moves into the final quarter of the fiscal year, its ability to capitalize on market demand and efficiently manage its network will play a crucial role in determining its financial performance and long-term growth prospects.
SpiceJet’s stock witnessed a positive movement ahead of its Q3FY25 earnings announcement, closing 1.70% higher at ₹47.97 on February 25. Investors appeared to show optimism leading up to the airline’s financial results, which were set to be disclosed the following day.
Over the past year, the stock has seen significant fluctuations. It reached its 52-week low of ₹39.91 on February 18, 2025, reflecting a period of downward pressure. Conversely, the stock hit its 52-week high of ₹79.90 on September 16, 2024, indicating a phase of strong upward momentum during that period.
The stock’s movement over the past year suggests volatility, likely influenced by various factors, including financial performance, industry trends, and broader market conditions. As the company released its Q3 results, market participants would have been closely monitoring the impact of the financial disclosures on the stock’s future trajectory.
SpiceJet, a small-cap stock, has experienced a significant decline over the past year, with its share price plunging nearly 30% during this period. The stock has faced persistent downward pressure, reflecting challenges that may have impacted investor sentiment.
On a shorter-term scale, the stock has been in a continued downtrend since December, registering losses on a monthly basis. This suggests that recent factors, possibly including financial performance, market conditions, or industry-specific developments, have contributed to sustained selling pressure.
The stock’s movement highlights volatility in the airline sector and broader market dynamics, with investors closely tracking the company’s financial position and strategic initiatives to assess potential future performance.