This Low-Cost Airline Returns to Profit After 7 Years

BENGALURU— After nearly seven years of turbulence, SpiceJet (SG) is finally flying high again. The low-cost carrier has posted its highest-ever quarterly profit of ₹319 crore in Q4 FY25 (January–March 2025). This marks a significant milestone in SpiceJet’s financial turnaround.

SpiceJet announced its quarterly results on June 14. This positive news marks not just a second consecutive profitable quarter but also SpiceJet’s first full-year net profit – ₹48 crore – since FY18. The airline has managed to have a sharp recovery from the ₹404 crore loss reported just a year earlier.

The comeback was possible because of a combination of reasons. The airline saw Strong passenger demand, strategic cost-cutting, and better yield management. This signals that SpiceJet is regaining stability in India’s cutthroat aviation space.

Photo: avgeekwithlens/ Harsh Tekriwal

SpiceJet Airline Returns to Profit

SpiceJet’s Q4 operating revenue rose by 17.5% quarter-on-quarter to ₹1,446 crore, while total revenue reached ₹1,942 crore. While that’s still a 16% dip year-on-year, it’s the airline’s renewed focus on operational efficiency that stands out.

EBITDA more than doubled to ₹527 crore, and the airline clocked a healthy 88.1% passenger load factor. SpiceJet had its all-time high load factor of 95.4% in 2018.

SpiceJet also saw another crucial metric improve in that quarter. The Revenue per Available Seat Kilometer (RASK) improved 3.4% YoY to ₹5.66. The data shows better monetization of capacity even in a challenging environment.

Though FY25’s full-year revenue of ₹6,736 crore was lower than FY24’s ₹8,497 crore, turning a profit amid a revenue dip underscores serious internal fixes.

SpiceJet’s return to profitability follows years of headwinds, including the grounding of its Boeing 737 MAX fleet in 2019 and then the ongoing maintenance delays. Despite previous struggles, the airline’s ability to consistently fill seats, even during downturns, has been key.

Photo: Photo: Siddh Dhuri | MumbaiPlanes

Capital Infusion Improved Financial Health

Much of this turnaround was made possible by a timely capital infusion. Chairman Ajay Singh and the promoter group pumped in ₹500 crore during FY25, including a final tranche of ₹294 crore in Q4.

Additionally, a ₹3,000 crore fundraise from qualified institutional buyers in December 2024 gave the airline breathing room.

Thanks to these efforts, SpiceJet now has a positive net worth of ₹683 crore—its first in ten years. The financial cleanup reflects positive investor confidence, which will help the airline to set a solid platform to rebuild and grow.

Talking about the operational side, SpiceJet launched 24 new domestic routes in FY25. The airline added new regional routes like Tuticorin, Porbandar, and Dehradun to its network. The airline also kicked off FY26 with a new international route to Kathmandu.

Global supply chain issues continue to delay the reactivation of its grounded fleet. However, the recent partnerships with StandardAero and Carlyle Aviation are starting to bear fruit for SpiceJet. Overhauled engines are slowly returning, and the airline might increase its capacity in the coming few months.

Photo: avgeekwithlens/ Harsh Tekriwal

A New Chapter Begins?

With India’s aviation sector on an upswing and demand booming, SpiceJet now seems better placed. The airline’s focus on trimming costs, expanding its network, and getting more jets back in the air shows that the airline is planning for growth.

As one of the few major Indian carriers making a financial recovery, SpiceJet’s resurgence is a win for travelers too. A competitive airline landscape means more options, better fares, and improved service.

Stay tuned with us. Further, follow us on social media for the latest updates.

Join us on Telegram Group for the Latest Aviation Updates. Subsequently, follow us on Google News

The post This Low-Cost Airline Returns to Profit After 7 Years appeared first on Aviation A2Z.