SpiceJet returns to profit after seven Covid-hit quarters

SpiceJet delivered on its chairman’s word and posted a surprise profit after making losses for seven straight quarters as ebbing Covid-19 cases paved the way for a relaxation in movement curbs and boosted domestic air travel. India’s third-largest budget airline posted a net income of 232.8m rupees ($3.1m) in the three months ended Dec. 31, according to a statement Tuesday. A Bloomberg survey of analysts had estimated an average loss of 3.2b rupees while the deficit in the same period last year was 569.6m rupees. Revenue rose 34% to 22.6b rupees, beating estimates. Total costs also surged 34% in tandem. SpiceJet’s shares closed 8.8% higher -- the most in three months -- paring the decline this year to 6.1%. Chairman Ajay Singh in October flagged SpiceJet had a “reasonable chance” of returning to profit in the December quarter as the no-frills carrier recovers from a punishing stretch during the pandemic which gutted global travel. SpiceJet has undertaken cost cuts and renegotiated aircraft leases to prune expenses while it bets on growth of its cargo operations and air travel. “There are renewed signs of recovery in the passenger segment and the logistics segment continues to remain strong,” Singh said in the post-earnings statement. “The settlement with Boeing was a significant event during the quarter.”<br/>