The Delhi-based low-cost airline, SpiceJet, has reported a net loss of Rs 2.38 billion for the first quarter ended June 30 this year as compared to a net profit of Rs 1.5 billion in Q1 FY25.
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, the airline said in a statement.
Indian airlines flying to the West have been facing longer flying hours as Pakistan airspace has been closed to Indian airlines since a brief conflict between the two neighbours in May this year. The Pakistan airspace remains closed for Indian carriers even though the conflict ended in a few days. Besides, conflict in the Middle East also affected Indian airlines flying westwards.
On an EBITDA basis, the airline reported Rs 180 million in the latest quarter compared to Rs 4.02 billion previously. Passenger Revenue per Available Seat Kilometre (PAX RASK) stood at Rs 4.74.
EBITDA is Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a financial metric used to assess a company’s profitability, particularly its operational efficiency, by excluding non-operating expenses and non-cash items, according to Wise.
The airline’s net worth improved to Rs 4.46 billion, compared to a negative Rs 23.98 billion in Q1FY25, reflecting successful financial restructuring initiatives.
Commenting on the latest results, the airline’s Chairman and Managing Director, Ajay Singh, said that this quarter’s results reflect the extraordinary challenges faced by the aviation industry, including geopolitical turbulence, restricted air routes, and supply chain disruptions. “Despite these headwinds, we continue to demonstrate resilience. We are taking decisive steps to enhance fleet reliability, reduce costs, and expand our network,” adding that, “we remain confident of a strong recovery trajectory in the coming quarters.”
SpiceJet looks to enhance fleet
The statement said that it had secured lease agreements for 10 Boeing 737 aircraft to be inducted from October 2025 and also that discussions were underway for additional inductions of narrow-body and wide-body aircraft during the winter. The airline did not specify what type of widebody it will be, whether it will be an Airbus or Boeing, or by when it will be inducted.
In July 2021, the airline inducted two widebody aircraft, a Boeing 767 and an Airbus A330, for its cargo operations.
In July this year, SpiceJet announced that it had finalized a lease agreement to induct five Boeing 737 aircraft. These aircraft are scheduled to join the airline’s fleet in October 2025, ahead of the commencement of the winter schedule, and will cater to the peak winter season as well as the early summer season of 2026, the airline said.
Globally, airlines follow two schedules— a summer schedule which extends from the last Sunday of March and ends on the last Saturday of October, while the winter schedule begins on the last Sunday of October and ends on the last Saturday of March. This is done globally so airports can adjust their slots.
Slots are specified times for an aircraft be it domestic or international airline to operate flights smoothly.SpiceJet is inducting the aircraft on a damp lease basis, where operational crew will be shared between the operator and SpiceJet.This fleet addition is part of the airline’s broader strategy to bolster capacity ahead of the winter schedule and cater to increased travel demand during the peak and early summer season.
SpiceJet is also in advanced discussions with other lessors to further enhance its fleet and strengthen both domestic and international operations.“This addition will significantly strengthen our fleet and enable us to deliver a superior flying experience to our passengers. We are actively exploring further fleet additions as we prepare for a robust winter schedule,” Debojo Maharshi, Chief Business Officer, SpiceJet, said.
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