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Indian budget carrier SpiceJet on Monday reported its highest quarterly profit in four years, as a sharp drop in expenses due to fewer flights operated more than offset a fall in revenue – sending shares up 6%.

The company's profit for the first quarter ended June 30 came in at 2.05 billion rupees ($24.7 million), from a loss of 7.89 billion rupees a year ago.

The airline also reported a profit of 168.6 million rupees for the quarter ended March 31, compared to a loss of 4.58 billion rupees a year before.

SpiceJet is reporting quarterly results for the first time since February, having delayed releasing its March-quarter numbers as a key member of its audit committee was ill.

The airline has been scrambling to raise funds and restore operations for about a fourth of its fleet, which has been grounded amid battles with its lessors over payments, as competition heats up fiercely in the sector.

Top shareholder Ajay Singh said last month he would infuse 5 billion rupees into the troubled carrier, as it looks to return to full operations.

In February, aircraft lessor Carlyle Aviation Partners acquired a 7.5% stake in the company's cargo unit SpiceXpress.

Additionally, top airline IndiGo and new entrant Akasa Air capitalised on troubles at SpiceJet and GoFirst, eating into their market shares.

SpiceJet's market share stood at 4.4% at the end of June, latest data from the aviation regulator showed, compared to 9.5% last year.

Overall first-quarter revenue was down 22% at 18.44 billion rupees, while expenses fell 37% as fuel costs nearly halved and foreign exchange losses narrowed by 99% due to the airline operating fewer flights.

SpiceJet's load factor, or the passenger carrying capacity being utilised, improved to 90% at June-end from 86.4% last year.

($1 = 82.9475 Indian rupees)