SpiceJet has reported a profit of Rs 102 crore for the quarter ended December 31, 2012, as compared to loss of Rs 39 crore in the same period the prior year. Revenue for the third quarter ended December 31, 2012 increased by 37% to Rs 1,603 crore as compared to Rs 1,173 crore of the corresponding quarter a year ago.
With better fleet optimisation, an altered route mix (thanks to more international flights) and higher yields, fuel cost as a proportion fell to 45% of the total revenue in the current quarter as against 50% in the comparable quarter for the previous year.
Notwithstanding this improvement, which certainly augurs well for civil aviation sector in the country, the fact remains that the Indian airline industry continues to bear the brunt of extremely high incidence of taxation. A weighted average tax rate of 24% on ATF prices across various stations in India is among the highest in the world and constitutes the biggest hurdle for domestic carriers in their quest for long term profitable growth.
Neil Mills, chief executive officer, Spicejet said, "To announce a profit at a time when the environment is challenging is an an achievement and demonstrates the strategic changes that Spicejet have made in the last two years."
The airline's domestic market share in December 2012 increased to 19.20% from 16.80% in December 2011.
The stock of Spicejet was up 5% to Rs 46.2 on the Bombay Stock Exchange (BSE) following announcement of results today.