SpiceJet today finally announced its financial results as the airline posts a profit in April to June quarter. But happiness was temporary as the airline got a court notice the same day.
SpiceJet posts profit
SpiceJet, in the April to June quarter posted a net profit of Rs 205 crore. In same period last year, the airline lost Rs 789 crore. The airline had not announced the January to March quarter results. It announced the results today. The airline posted a profit of Rs 16.8 crore. In Jan-Mar 2022, the airline posted a loss of Rs 457.9 crore. As of March 31 2023, the net worth of Spicy was in deep red with negative Rs 3,231 crore.
In FY23, the airline reported a revenue of Rs 8,869 crore. In FY22, it reported revenue worth Rs 6,557 crore. One of the major highlights was the hiving off of the Logistics arm – SpiceXpress. UK Based SRAM & MRAM Group even signed an Memorandum Of Understanding with SpiceXpress for funding of upto 100 million dollars.
Managing Director and Chairman of SpiceJet said that he will infuse funding worth Rs 500 crore into the airline. This amount will help the airline to bring some grounded planes back to operational status. Ajay Singh said that he is confident about the potential of the airline. The infusion is expected to revive a portion of fleet and strengthen the cargo operations.
The airline delayed the Q4 FY23 and Q1 FY24 results because of a medically incapacitated audit member.
What about SpiceXpress?
SpiceXpress was hived off after the airline got approval from its board of directors. Ajay Singh during the financial results declaration said that the Cargo and Logistics arm, SpiceXpress will continue to grow. He added that the arm has given exceptional performance and has been a driving force to keep the airline afloat across the pandemic.
Ajay Singh is saying this but reality is a little bit opposite as Prince Thomas of Morning Context pointed out that the airline’s cargo unit has incurred losses in Q4 last year. Also, the passenger services has done good when compared year on year but cargo services have remained stalled.
One reason may be the reduction in fleet size. At one point of time, SpiceXpress was operating 3 Freighters. The fleet is now down to only 1 as other 2 are parked at Mumbai CSMIA. The airline is however awaiting delivery of one more Boeing 737 Freighter. The ex-Virgin Atlantic B737 will be named Thunder and is currently at Yichang for conversion.
Source Credits : Times of India