Business News : Budget airline SpiceJet has suffered a major setback in the first quarter. The airline on Wednesday reported a 20% drop in consolidated profit for the April-June quarter. This is because the financial crisis affected its operation. The airline's profit stood at Rs 158.75 crore in the first quarter of FY25, while it was Rs 197.58 crore in the same period a year ago. According to IANS news, experts said that due to cash crunch, the airline had to ground some of its aircraft, which led to loss of revenue.

Recorded EBITDA of Rs 650 crore

According to the report, during the quarter under review, the airline's revenue from operations also declined by 14.15 per cent to Rs 1,646.21 crore from Rs 1,917.43 crore in the same period last year. The airline recorded an EBITDA of Rs 650 crore, up from Rs 616 crore in Q4 FY24. It continues to be the industry leader with the highest domestic load factor of 91 per cent, reinforcing its strong market position and operational excellence.

The process to raise Rs 3,000 crore has been initiated

In a major move to further strengthen its financial position and support its growth plans, SpiceJet has already initiated the process to raise Rs 3,000 crore. SpiceJet Chairman and Managing Director Ajay Singh said the upcoming fundraise of Rs 3,000 crore through QIP will help strengthen our financial foundation and position SpiceJet for continued success. We believe in the resilience of our business model and are committed to providing the best flying experience to our customers. The quarterly results were announced after market open today.