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This is the biggest profit ever for SpiceJet in a quarter.
India’s low cost airline SpiceJet has recorded the biggest profit ever. The fourth quarter of FY 2024-25 i.e. from January to March, the company has a net profit of Rs 319 crore.
This is 12 times more than the previous quarter. Between October and December, the company made a profit of Rs 26 crore. For the first time after about 7 years, the company has been in profit throughout the financial year. Along with the record profit in the fourth quarter, the company has generated a revenue of 1,942 crores.
There were three reasons for SpiceJet’s record profit
- Strong passenger demand and control on expenses This return of SpiceJet is due to strong passenger demand, control on expenses and correct pricing of tickets. The company’s operating income increased by 17.5% to Rs 1,446 crore in the January-March quarter. The passenger load factor was more than 88%, that is, most of the flights were filled with seats.
- Extension of new routes SpiceJet launched 24 new flights in the domestic network and added new cities like Tutukuri, Porbandar, Dehradun. In addition, the company started special flights for Haj. This increased the company’s profits. The company has also started international flights from Kathmandu for the next financial year.
- Promoters investment of ₹ 500 crore in company SpiceJet’s net worth is also continuously improving. At the end of this, it reached 683 crore rupees. Promoter Group invested Rs 500 crore in the company, out of which Rs 294 crore came in the January-March quarter. This further strengthened the company’s financial condition.
SpiceJet’s share has dropped 25% in 6 months
SpiceJet’s share fell by 1.95% to close at 43.81, a day before the quarterly results. The airline company shares have given negative returns of -2.84% in a month. Whereas, the long term has fallen 25% in 6 months and 20% in a year. SpiceJet’s market cap is 6190 crores.
Consolidated profits mean performance of the entire group
Companies’ results come in two parts- Standalone and Consolidated. Financial performance of only one unit is shown in standalone. Whereas the entire company reports are given in the consolidated or consolidated financial report.
India’s low cost airline is SpiceJet
SpiceJet is India’s low cost airline, which connects remote corners of the country. The company operates about 250 flight daily for 48 destination and international destination within India. SpiceJet’s fleet includes Boeing 737 Max, Boeing 700 and Q400.
The SpiceJet brand began in 2004, but its Air Operator Certificate (AOC) is 1993. Then an air taxi company owned by SK Modi partnered with Lufthansa with the German airline. Its operations stopped in 1996.
In 2004, Entrepreneur Ajay Singh planned to create India’s low cost airline SpiceJet. SpiceJet’s first flight left for Mumbai (BOM) from New Delhi (BOM) using Leasted Boeing 737-800 on 24 May 2005.
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