BENGALURU (Reuters) -Indian budget carrier SpiceJet reported a fourth-quarter profit jump on Monday following a gain from a settlement with a financing agency and the airline said it was in talks to raise additional funds.
The company’s standalone profit rose to 1.19 billion rupees ($14.2 million) in the fourth quarter ending March, from 168.6 million rupees a year earlier.
SpiceJet said it booked a gain of 5.68 billion rupees related to a settlement in March with trade finance agency Export Development Canada (EDC). In 2011, the airline took ownership of 13 Bombardier Q400 aircraft with the help of EDC financing.
The gain, coupled with a 10% fall in expenses helped to more than offset a nearly 20% fall in total revenue during the fourth quarter as SpiceJet struggles to boost capacity.
The carrier, which had delayed publishing quarterly results for the third time in as many years, also reported a third-quarter loss of 3.01 billion rupees. SpiceJet did not mention a reason for the delay in publishing its third- and fourth-quarter results.
The company reported a full-year loss of 4.09 billion rupees, the smallest since 2019.
SpiceJet has struggled to scale up operations over the past year, despite several attempts, from reaching settlements with some lessors, and raising funds, to even cutting jobs to save costs.
The company reported cash and cash equivalents of 1.87 billion rupees as of end-March, while its cash from operational activities was negative 6.13 billion rupees.
SpiceJet’s market share was 5.4% as of March-end, down from 6.9% a year earlier, as it flew 20% fewer passengers, according to data from India’s aviation regulator.
The company’s legal and financial troubles have prevented it from taking advantage of rival Go First’s troubles even as carriers IndiGo and Air India induct new jets and expand product offerings and destinations.
($1 = 83.5550 Indian rupees)
(Reporting by Nandan Mandayam in Bengaluru; Editing by Varun H K and Shounak Dasgupta)
