SpiceJet swings to profit of Rs 23.8 cr in Q2

The company made a Rs 310 crore net loss for the same period last year

Budget carrier SpiceJet Ltd reported a small net profit in the July-September period on Thursday, its third quarterly profit in a row and helped by sliding fuel costs and higher passenger numbers on a smaller fleet.

India's second-biggest budget airline by market share, which came close to collapse late last year after running out of cash, reported a Rs 23.8 crore net profit for the quarter, against a Rs 310 crore net loss a year earlier, SpiceJet said in a statement.

In India's fast-growing aviation market, where competition is fierce and operating costs stubbornly high, carriers have found it tough to make money, but tumbling oil prices and a near 20% annual jump in passenger numbers have helped ease the pain this year.

The successful stock market debut this week of InterGlobe Aviation Ltd, owner of the biggest and most profitable Indian carrier, IndiGo, reflected the improved outlook for the sector.

Full-service carrier Jet Airways Ltd last month reported its second consecutive quarterly profit after a string of losses.

SpiceJet has returned to profit this year by filling more seats on its planes after reducing its capacity by 34% from last year. Its load factor stood at 92.8% during the June-September quarter, the airline said.

SpiceJet's shares have nearly tripled this year and are trading at their highest since 2011. They closed up 2.9% on Thursday in a Mumbai market that rose 0.5%.

"Our third consecutive profitable quarter since we embarked on the revival process, shows that we are on the right track," Chairman and Managing Director Ajay Singh said.