Key Points

The sharp decline came as revenues from operations dropped 34.4 per cent year-on-year (YoY) to Rs 1,120 crore from Rs 1,708 crore, according to its stock exchange filing.

The airline said the losses were mainly due to costs linked to grounded aircraft and expenses for bringing them back into service.

It also pointed to geopolitical tensions with a neighbouring country and airspace restrictions in key markets, which hit leisure travel demand.

Despite the loss, SpiceJet highlighted that its financial position has improved. The airline’s net worth turned positive at Rs 446 crore during the quarter, reversing the deficit of Rs 2,398 crore reported in Q1 FY25.

Operationally, SpiceJet recorded a passenger load factor of 86 per cent, while passenger revenue per available seat kilometre stood at Rs 4.74.

The company also said it finalised a restructuring deal with Carlyle Aviation Management Limited for lease obligations worth $121.18 million.

In addition, it has secured lease agreements for 10 Boeing 737 aircraft, set to join its fleet from October, and is in talks for further inductions of both narrow-body and wide-body aircraft during the winter season.

Commenting on the performance, Chairman and Managing Director Ajay Singh said the results reflected the “extraordinary challenges” faced by the aviation sector.

He pointed to geopolitical turbulence, restricted routes and supply chain disruptions as major headwinds but stressed that SpiceJet is taking steps to improve fleet reliability, cut costs and expand its network.

Singh expressed confidence that India’s fast-growing aviation and tourism markets would support a strong recovery in the coming quarters.

The airline’s results were announced after market hours on Friday. Earlier in the day, SpiceJet shares closed nearly 2 per cent lower at Rs 34.45 apiece.

The stock has slipped more than 6 per cent over the past week but is still up by about 1 per cent in the past month.

- IANS