SpiceJet Q2 Loss Widens to ₹621 Crore! Is This Low-Cost Carrier Facing Turbulence or a Turnaround Ahead?

SpiceJet Limited announced a net loss of ₹621 crore for the second quarter ended September 30, 2025. This marks a considerable widening from the ₹458 crore loss reported in the same period last year. Revenue also saw a decline of 13.4%, falling to ₹792 crore from ₹915 crore year-on-year. The company attributed the poor performance to several factors including the cost of recalibrating dollar-based future obligations, carrying costs for its grounded fleet, and expenses related to returning aircraft to service (RTS). Persistent airspace restrictions further exacerbated operational costs, leading to an operating loss of ₹297 crore. The airline also incurred ₹120 crore in costs for grounded aircraft and ₹30 crore for RTS activities. On an EBITDAR (ex-forex) basis, the loss expanded to ₹203.80 crore from ₹58.87 crore.

However, there were operational bright spots. SpiceJet achieved an 84.3% Passenger Load Factor (PLF) and saw its Passenger Revenue per Available Seat Kilometre (RASK) improve slightly. Operationally, the airline finalised a damp lease agreement for 19 aircraft, returned two grounded aircraft to service, and secured $89.5 million in liquidity through its Carlyle settlement. It also completed a $24 million payment to Credit Suisse. Looking ahead, SpiceJet plans to add 19 aircraft under damp lease for the winter schedule and aims to more than double its fleet and triple its Available Seat Kilometres (ASKM) during this period.

Impact: This news is bearish in the short term due to the widening net loss and declining revenue, which may put pressure on SpiceJet's stock. However, the operational progress and management's optimistic outlook for the second half of the year, coupled with fleet expansion plans, could be viewed positively by investors looking for a turnaround. The aviation sector often faces seasonal fluctuations and cost pressures, making these results significant for sector-specific analysis. Rating: 6/10

Difficult Terms Explained: EBITDAR (Earnings Before Interest, Taxes, Depreciation, Amortization, and Rent): A measure of a company's operating performance before accounting for interest, taxes, depreciation, amortization, and rent expenses. It's often used in the airline industry to assess operational profitability. Damp Lease: An arrangement where an airline leases an aircraft along with a crew, maintenance, and insurance. This is often used to quickly expand capacity without the capital expenditure of acquiring new aircraft. RASK (Revenue per Available Seat Kilometre): A key performance indicator for airlines, measuring the revenue generated per seat flown per kilometre. It indicates how effectively an airline is filling seats and generating income from them. PLF (Passenger Load Factor): The percentage of available seats filled by passengers on a flight. A higher PLF generally indicates better operational efficiency and demand. ASKM (Available Seat Kilometres): A measure of an airline's carrying capacity. It is calculated by multiplying the number of seats available by the number of kilometres flown. RTS (Return-to-Service): The process and associated costs involved in bringing a previously grounded or inoperable aircraft back into operational service.