Indian low-cost carrier SpiceJet finally announced its second quarter financial results after having delayed for two quarters, and the news coming out is actually in favour of the airline.
SpiceJet Q2 performance
SpiceJet has finally reported a net profit of Rs.197.53 crore in Q2 of FY 2023-2024, after the airline reported a net loss of Rs.62 crore for Q1 of FY 2023-2024
Many factors attributed to this result and one of the main contributing factor has been the fall in aviation turbine fuel (ATF) cost in the Q2.
The airlines fuel expenses were nearly half when compared to the expense it incurred previous year. due SpiceJet had earlier announced that it will be delaying its announcement of its committee was sick.
To add to this the airline has not operating at its peak as some of its aircraft are either grounded or the lessor of the aircraft had taken back their planes.
Comments by SpiceJet Chairman
“Despite facing multiple challenges, we have posted a profit in Q1 FY2024. Our team’s relentless efforts and dedication and the continuous support from our valued customers have been pivotal in this success I firmly believe in the potential of our airline.”
“I am pleased to have contributed to its growth by infusing INR 500 Crore into the Company,” said Mr. Ajay Singh chairman and managing director in a statement.
This infusion will help bolster our efforts in reviving our grounded planes, for which we have been working tirelessly, strengthening our fleet and expanding our cargo operations,” he said.
“Our logistics arm continues to soar. It’s exceptional performance, with sustained profits, has been a driving force, contributing to our overall success.”
“We remain focused on adapting to the changing landscape of the aviation industry, identifying and seizing new opportunities, and steering our airline towards greater heights.” the statement concluded.
Competition from Akasa Air
Recently, India’s youngest airline Akasa Air beat SpiceJet in terms of market share in the winter schedule. According to the data available Akasa Air flew nearly 6.2 lakh passengers whereas SpiceJet flew only 5.5 lakh passenger in the same period.
A recent warning issued by FAA for Boeing 737 MAX CFM engine on its overheating might hamper the plans of both Akasa and SpiceJet as these airlines operate an all Boeing 737 fleet.
SpiceJet does own some 737 NG models but Akasa has all 737 Max fleet. For now, Boeing said a statement that it has identified the measures to mitigate the issue and is working closely with its customers.
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