SpiceJet Q1 profit down by 20% to Rs 158 crore as cash crunch hits ops

economictimes.indiatimes.com:

SpiceJet on Wednesday reported a 20% per cent drop in consolidated profit for the April-June quarter, as a financial crunch took a toll on its operations.

The carrier's profit came at Rs 158.75 crore in Q1 FY25 as against Rs 197.58 crore in the year-ago period.

Experts said the cash crunch had forced the airline to ground some of its aircraft, hurting revenue.

During the quarter under review, the airline's revenue from operations also took a hit and slipped 14.15 per cent to Rs 1,646.21 crore from Rs 1,917.43 crore in the corresponding period last year.

The airline reported an EBITDA of Rs 650 crore, up from Rs 616 crore over Q4 FY24.

It said that it continued to lead the industry with the highest domestic load factor of 91 per cent, reinforcing its strong market position and operational excellence.

«In a major move to further strengthen its financial position and support its growth plans, SpiceJet has already initiated the process of raising Rs 3,000 crore through a Qualified Institutional Placement (QIP), which is expected to be completed by the end of September 2024,» the airline also said.