 "SpiceJet posts Rs 24-cr net")
SpiceJet increased its unit revenue by 14 per cent through a consistent rise in load factor on lower fares and promotion offers. In the second quarter of 2015-16 the airline reported loads of 92.8 per cent, 12 per cent higher than in the same period a year ago. SpiceJet reported earnings before interest, tax and depreciation of Rs 75 crore during the quarter under review against a loss of Rs 239 crore in the same period of the previous year.
This was also the third consecutive profitable quarter for the airline, which saw founder-promoter Ajay Singh take charge in January. Since then, the airline is on a revival course, adding aircraft and routes withdrawn during a crisis last winter. “Our performance will improve as we continue to focus on revenue maximisation, cost reduction, operational reliability and on-time performance,” Singh said. Overall expenses declined 38 per cent and fuel costs were down 57 per cent on a fall in jet fuel prices and reduced capacity. The net profit was also aided by a 2.5 times increase in other income at Rs 72 crore.
This includes a reversal of a provision of Rs 65 crore for an aircraft lease termination contract.
Average fleet utilisation improved to 13 hours and the airline has benefitted from route rationalisation and withdrawal of loss-making routes. Ancillary revenue, too, improved during the quarter.
“Our focus was to ensure we remained cash positive in a traditionally weak quarter,” said Kiran Koteshwar, chief financial officer, SpiceJet. The airline added six aircraft during the quarter, including two Airbus A320s taken on wet lease. The airline is negotiating for dry lease of aircraft with lessors and hopes to extend the leases of its Airbus aircraft beyond the current three months.
