SpiceJet secures a deal with Boeing over its 737 MAX orders. Image Credit: AFP

Dubai: Indian low-cost carrier SpiceJet hit a net profit of Rs232.8 million in the latest financial quarter and a one time-charge of Rs774.6 million related to a 737 MAX aircraft settlement deal with Boeing.

“The passenger industry witnessed the much needed turnaround in the third quarter as Covid cases ebbed in the first-half of the quarter, travel picked up significantly, and there was finally hope that the worst was behind us,” said Ajay Singh, Chairman and Managing Director, SpiceJet. “However, that changed by the second-half of December as Omicron halted that recovery.

“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.”

SpiceXpress, the company’s logistics platform, continued its growth trajectory, reporting increased revenue of Rs5.84 billion for the reported quarter compared to Rs4.98 billion in the last quarter. The airline said it 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 the way for the induction of more efficient and younger MAX aircraft into SpiceJet’s fleet,” said the airline. “The settlement also ensures the resumption of new aircraft deliveries from our order of 155 MAX aircraft.”

SpiceJet, which reported an average domestic load factor of 85.2 per cent, said it launched 40 new routes to strengthen its domestic network besides adding Kushinagar as its latest UDAN destination. It also became the first and only airline in India to operate non-stop flights on Delhi-Tirupati sector. “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 and expanding network both domestically and internationally,” it said in a statement.