Indian low-cost carrier Spicejet cut its full-year pre-tax loss to Rs4.1 billion ($49 million) for the year ended March 2024, after publishing its first set of financial results for six months.
SpiceJet released both its third quarter and fourth quarter results after the accounts were approved at a board meeting on 15 July. It marked the carrier’s first published results since releasing its second quarter results on 12 December.
The Indian carrier posted a pre-tax loss of Rs3 billion for its third quarter, covering the three months ending 31 December. That compared with a profit of Rs1 billion at the same stage the previous year. It did though record a profit of Rs1.2 billion in the fourth quarter, a Rs1 billion improvement on the same period last year. That was helped by it recording a gain of Rs5.7 billion following a settlement with Export Development Canada.
SpiceJet, which had already sharply reduced losses in the first half, ended the year with a pre-tax loss of Rs4.1 billion – a marked improvement on the Rs15 billion it lost in its 2022-23 financial year. There was a similar reduction in net losses for the year to Rs4.1 billion. It marks SpiceJet’s lowest loss since before the pandemic.
The struggling carrier was forced to ground a number of aircraft following the pandemic and liquidity challenges. It has since carried out several capital raising measures and been working to bring grounded aircraft back into service, while looking to reach further settlements with lessors over liabilities.
”The company is in ongoing discussions with certain potential investors for raising additional funds and is also expecting relief from certain lessors for settlement of their outstanding dues,” it says in notes attached to its accounts.
”Based on the foregoing and its effect on business plans and cash flow projections, the management is of the view that the company will be able to raise funds as necessary and achieve profitable operations, in order to meet its liabilities as they fall due.”
SpiceJet chair and managing director Ajay Singh says: “We are pleased to announce a strong financial performance in Q4 FY2024. The results reflect our relentless efforts to enhance operational efficiency and our commitment to turning around the company’s fortunes.”
