SpiceXpress' revenue grows 17%; plans to increase freighter capacity
The Indian carrier SpiceJet reported a net profit of ₹23.28 crore (despite one-time exceptional adjustment of ₹77.46 crore on account of settlement) for the quarter ending December 31, 2021.
SpiceXpress, the company's logistics platform, continued on its growth trajectory reporting increased revenue of ₹584 cr for the reported quarter as compared to ₹498 cr in the last quarter, a jump of 17 percent. The company plans to significantly increase freighter capacity in the coming quarters.
SpiceXpress carried more than 39,000 tonnes of cargo in Q3 FY2022 while its network spans over 67 domestic & 105 international destinations including to US, Europe and Africa
The airline recorded a 74 percent rise in the third quarter revenue to ₹2,679 cr as against ₹1,539 cr in the previous quarter as it added more destinations and newer aircraft to its fleet. For previous quarter, operating expenses were ₹2,100 cr as against ₹2,579 cr for the current quarter. On an EBITDA basis, SpiceJet reported a profit of ₹511 cr as against a loss of ₹106 cr for the last quarter. On an EBITDAR basis, the company reported a profit of ₹644 Cr as against a profit of ₹66 cr for the last quarter.
Ajay Singh, chairman and managing director, SpiceJet, said, "I am happy that SpiceJet reported a profit in Q3 FY2022 driven by excellent logistics operations, rebound in passenger traffic and various accommodations from aircraft manufacturer and lessors."
"Our performance would have been much better but was impacted by the unexpected delay in the return to service of the 737 MAX, rising fuel costs and certain exceptional adjustments. I am happy to say that there are renewed signs of recovery in the passenger segment and the logistics segment continues to remain strong. "
The settlement with Boeing was a significant event during the quarter. As expected, the company received cash and non-cash accommodations significantly in excess of the amounts due to lessors during the period of grounding of MAX aircraft. The settlement not only brought back into operations the grounded 737 MAX aircraft but also paves way for the induction of more efficient and younger MAX aircraft into SpiceJet's fleet. The settlement also ensures the resumption of new aircraft deliveries from our order of 155 MAX aircraft. SpiceJet celebrated the return to service of the 737 MAX with a special flight from New Delhi to Gwalior.
The airline is now aiming for a stronger comeback in 2022 by utilising and expanding its 737 MAX fleet for better yield and flying experience, launching new customer centric services, optimising daily operations based on IT and expanding network both domestically and internationally.
