The two Delhi based low cost airlines, SpiceJet and IndiGo were flying high on Wednesday. SpiceJet SpiceJet reported quarterly earnings and posted a profit after tax of Rs 260 million for the third Quarter 25 against a net loss of Rs 3000 million reported during the same period year-over-year.. In a statement the airline said its total revenue surged by 35 percent to Rs 16.51 billion. As per the statement this was driven by many factors including strong passenger demand and improved yields. During the latest quarter the airline reported an Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) at Rs 2.10 billion, which would have been Rs 3.16 billion but for foreign exchange fluctuation. In the same quarter year-over-year, EBITDA was Rs 30 million which would have been Rs 300 million but for foreign exchange fluctuations. The airline claimed it spent Rs 1.7 billion in getting aircraft off the ground during the latest quarter as compared to the previous quarter.. The statement further indicates that during the year the airline successfully settled multiple outstanding disputes with aircraft and engine lessors, amounting at Rs 12.33 billion bringing it down from Rs 17 billion. These include settlements with at least eight aircraft lessors including Aircastle, Carlyle Aviation, Cross Occean, Echelon and Wilmington Trust Commenting on the results, Ajay Singh, Chairman and Managing Director of the airline said that for the first time in a decade, the company had turned net worth positive. The airline reported a net worth of Rs 70 billion. “The past is behind us, and we are now firmly focused on building a stronger, more resilient future,” he emphasized. The statement quotes Singh as saying that the airline is in discussions with OEMs for advanced deliveries of aircraft and is actively exploring both organic and inorganic growth opportunities. Debojo Maharshi, Chief Business Officer, SpiceJet added that strong demand and effective network optimization were expected to drive a double-digit growth in RASKs during the fourth quarter of FY25 compared to the previous year. IndiGo IndiGo announced another firm agreement with Norse Atlantic Airways for the damp lease of three Boeing 787-9 aircraft. These aircraft will start arriving by the second half of this year. The airline plans to use these aircraft to serve long-haul routes from India. Earlier this month the airline had signed a damp lease agreement with Norse for a Boeing 787-9 which will be deployed on the Delhi-Bangkok-Delhi route which will start operating daily from March 1. Commenting on the latest development, Pieter Elbers, Chief Executive Officer, IndiGo said that this will help the airline make strategic inroads and establish the brand in the European market. “As we execute our broader strategy to strengthen and extend our international network, we are steadily advancing towards our vision of becoming a global player by 2030, firmly rooted in India and driven by continuous expansion,” he said. The airline has still not disclosed either the cities in India or cities in Europe to which these aircraft will be deployed. IndiGo also said that it along with Norse will continue to “explore opportunities to broaden the cooperation and possibility for contracting more aircraft.” As with the previous aircraft on a damp lease, for these three Boeing 787-9 the initial term of the agreement will be six months, extendable to up to 18 months, subject to regulatory approvals. “Both parties remain committed to exploring opportunities to further extend this period,” the airline said in a statement. The Bottom Line The two Delhi-based LCCs are moving forward with new strategies. SpiceJet is finally profitable, and looking to grow both organically and by acquisition. IndiGo is looking for substantial expansion as quickly as possible, taking on new aircraft to competing with a revitalized Air India not only on domestic but also in international markets. It will be interesting to watch how well the new strategies can be implemented, so stay tuned.
