SpiceJet Swings to Profit in Q3FY25 with ₹25 Crore Net Gain Amid Turnaround Efforts

Gurugram-based budget carrier SpiceJet Ltd has reported a net profit of ₹25 crore for the October-December quarter (Q3FY25), marking a significant turnaround from its previous losses, as the airline continues its restructuring and operational efficiency initiatives.

From Losses to Profitability: A Strategic Rebound

After struggling with financial headwinds, SpiceJet has returned to profitability for the first time in several quarters, demonstrating the impact of its cost-cutting measures, improved passenger demand, and operational efficiency.

• The airline had reported a net loss of ₹300 crore in Q3FY24 and an even higher net loss of ₹431.54 crore in Q2FY24.
• For the July-September quarter (Q2FY25), the net loss widened to ₹441.7 crore, but a strong recovery in Q3FY25 helped it turn profitable.
• SpiceJet’s total revenue surged by 35% to ₹1,651 crore, driven by higher passenger yields and better load factors.

Chairman and Managing Director Ajay Singh emphasized the significance of this turnaround, stating:
“For the first time in a decade, the company turned net worth positive—an important milestone that underscores the success of our turnaround strategy. The past is behind us, and we are now firmly focused on building a stronger, more resilient future for SpiceJet.”

Revenue Performance and Passenger Growth Trends

Despite the airline’s return to profitability, revenue figures remain below last year’s levels, indicating that the recovery is still in progress.

• Q2FY25 revenue stood at ₹817.12 crore, lower than ₹1,425.29 crore in Q2FY24.
• Q3FY25 revenue rose to ₹1,140.66 crore, but was still lower than ₹1,756.6 crore in Q3FY24.
• Passenger Load Factor (PLF) for Q3FY25 stood at 87%, reflecting strong demand and improved capacity utilization.

Declining Market Share Despite Rising Demand

While domestic travel demand in India has surged over the past eight quarters, SpiceJet has witnessed a decline in its market share and passenger count due to fleet constraints and operational challenges.

• Q2FY25: Carried 9.69 lakh passengers with a 2.5% market share, down from 15.90 lakh passengers (4.3% market share) in Q2FY24.
• Q3FY25: Carried 12.67 lakh passengers with a 3% market share, down from 21.84 lakh passengers (5.6% market share) in Q3FY24.

Future Outlook: Network Optimization & Revenue Growth

SpiceJet remains optimistic about continued revenue growth and profitability in the coming quarters, supported by demand recovery and strategic capacity deployment.

According to Debojo Maharshi, Chief Business Officer of SpiceJet,
“Strong demand and effective network optimisation are expected to drive a double-digit growth in revenue per available seat kilometre (RASK) during Q4FY25 compared to the previous year.”

A Positive Step Towards Stability

SpiceJet’s Q3FY25 profitability marks a crucial milestone in its financial recovery, reflecting the effectiveness of its restructuring efforts. However, the airline still faces challenges in market share recovery and fleet expansion. With sustained cost efficiency measures, improved revenue management, and strong domestic travel demand, SpiceJet is positioning itself for a more stable and profitable future in the Indian aviation sector.