 "A man looks out through a window with an advertisement of SpiceJet Airline, on a commercial building in Ahmedabad")
SpiceJet, the country’s second-largest low-cost airline, reported a quarterly profit of Rs 73 crore for the January to March period, thanks to low fuel prices.
This is a fifth straight profitable quarter for SpiceJet. For the whole year, its net profit stood at Rs 407 crore, against the loss of Rs 687 crore last financial year. The airline has decided to use Rs 173 crore as a one-time expense to upgrade its fleet.
“We decided to use the financial cushion to clear all debts and legacy issues. Every single legacy issues has been addressed and accounted for in this quarter,” said Ajay Singh, chairman and managing director, SpiceJet. “We have also provided for every single claim on the company’s books. Except three, all claims have been settled,” he added.
The airline saw a change of guard after it had landed in financial trouble, leading to grounding of flights. Total revenue went up by 10 per cent to Rs 1,474.98 crore, against Rs 791 crore in the same period last year.
Expenses came down sharply, with fuel cost at Rs 328.66 crore this year (FY16), against Rs 366.63 crore last year (FY15) — a decline of 10 per cent. On the back of low fuel cost, total expenses came down by 20.26 per cent to Rs 4,773.50 crore against Rs 5,986.37 crore.
SpiceJet increased its unit revenue through a consistent rise in load factor, on lower fares and promotion offers. The management said that the airline was planning to expand capacity by adding more than 100 aircraft by the end of this financial year (FY17).
At the Ebitda (earnings before interest, taxes, depreciation and amortisation) level, SpiceJet reported a profit of Rs 146 crore against a profit of Rs 80 crore in the same quarter last year, the airline said. On a yearly basis, the profit was Rs 640 crore against loss of Rs 397 crore last year.
The scrip closed at Rs 79.95, down 4.62 per cent, in the benchmark index.
