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SpiceJet Faces Turbulence: Quarterly Loss Widens as Passenger Traffic Drops
12 Nov
Summary
- SpiceJet's quarterly loss widens to ₹634 crore ($72.1 million)
- Passenger numbers drop 22.5% to 751,000 during the quarter
- Airline relies on wet-lease arrangements to boost capacity for holiday season
As of November 12, 2025, Indian budget carrier SpiceJet is facing significant financial challenges, reporting a wider quarterly loss compared to the same period last year. The airline's loss for the quarter ended September 30 stood at ₹634 crore ($72.1 million), up from ₹442 crore a year ago.
The primary factors contributing to SpiceJet's woes are a drop in passenger traffic and mounting foreign exchange costs. The company's passenger numbers declined by 22.5% to 751,000 during the quarter, which in turn dragged down its revenue by around 13% to ₹7.08 billion.
To address the capacity crunch, SpiceJet has been relying on wet-lease arrangements, where it pays to use other airlines' aircraft to boost its fleet ahead of the busy holiday season. However, a significant portion of its Boeing 737 MAX fleet remains grounded, further exacerbating the carrier's operational challenges.
Despite multiple fundraising efforts and settlements with lessors, SpiceJet has been slow to ramp up its fleet capacity. The company's chairman and managing director, Ajay Singh, acknowledged that the current results reflect "short-term costs related to fleet revival and expansion," but expressed optimism that these strategic investments will start yielding results in the current quarter.
The airline's financial woes were further compounded by an eight-fold jump in foreign exchange losses, which stood at ₹188 crore, equivalent to 26.5% of its total revenue for the quarter.
