SpiceJet's Impressive Comeback in Q4 FY25
SpiceJet Earns a High Q4 Profit of Rs 319 Crore, Restoring Annual Profitability Following a Seven-Year Absence
India's budget airline, SpiceJet Ltd., has staged an impressive comeback, reporting its best-ever quarterly profit of Rs 319 crore for Q4 FY25, marking the second consecutive profitable quarter. This is a stark contrast to the Rs 404 crore loss in FY24, an enormous turnaround for the airline.
Financial triumph and operational success
For the full fiscal year ending March 31, 2025, SpiceJet declared a net profit of Rs 48 crore, a first annual profit in seven years. In Q4, the airline's operating revenue jumped 17.5% sequentially to Rs 1,446 crore, while total revenue stood at Rs 1,942 crore compared to Rs 1,651 crore in the previous quarter. A robust Passenger Load Factor (PLF) of 88.1%, and an improved Revenue per Available Seat Kilometer (RASK) of Rs 5.66 underscored strong market demand and pricing power.
SpiceJet's profit after tax (PAT) soared to Rs 319 crore from Rs 26 crore in Q3 FY25, while EBITDA more than doubled to Rs 527 crore, highlighting effective cost management and improved yields.
Expansion and network growth
Amidst this financial success, SpiceJet also announced the launch of 24 new domestic flights and the addition of three new destinations - Tuticorin, Porbandar, and Dehradun - under its Summer 2025 schedule. The airline also extended its network to Kathmandu, its first international destination of FY25.
Delays in fleet revival
Though airline chairman and MD Ajay Singh acknowledged delays in grounded fleet revival due to global supply chain and engine overhaul constraints, he expressed optimism, attributing it to partnerships with StandardAero Inc. and Carlyle Aviation that facilitate engine overhauls and gradual fleet restoration. "With overhauled engines now returning, we expect a steady ramp-up in operational capacity in the weeks ahead," Singh said.
As SpiceJet continues to navigate challenges and seize opportunities, its strong financial performance and strategic expansion are paving the way for a promising future.
- The impressive financial performance of SpiceJet, as seen in their Q4 FY25 profit of Rs 319 crore, is indicative of the thriving finance market and the potential of the business sector.
- In the technology-driven financial sector, SpiceJet successfully managed costs and improved yields, as evident by their PAT soaring to Rs 319 crore from Rs 26 crore in Q3 FY25, and EBITDA more than doubling to Rs 527 crore.
- As SpiceJet expands its domestic network with the addition of three new destinations and the launch of 24 new flights, it signals a significant growth in the defi market and innovation in the business and technology arenas.
