SpiceJet expects to become profitable next year
24 January 2008
New Delhi: SpiceJet declared its third quarter results for period October 07 to December' 07 with an operational breakeven. Its operational revenue has almost doubled over the last quarter showing a 97% growth and is now at Rs4085 million.
The total income of the company has achieved a growth of 71% and is now at Rs4380 million.
At an operational level, the company achieved a break-even with a profit of Rs0.4 million compared to an operational loss of Rs259.3 million last year. Net profit for the quarter is reported at Rs93.4 million. This includes non-operating income from foreign exchange fluctuation of Rs35.3 million and profit on sale of two aircraft of Rs57.6 million.
The number of flights during the quarter has increased from 5506 last year to 8918 this year, resulting in a growth of 62%. The number of passenger flown in Q3 last year was 6.95 lacs and is now at 11.66 lacs showing a growth of 67 %.
Despite increasing the average fleet size from 8.7 aircrafts ( Q3 2006 ) to 15.2 aircrafts ( Q3 2007) the company has been successful in maintaining its load factor at 76% during the quarter (last year same quarter was 75.8 %) .
Growth in Available Seat Kilometer flown is 72% at 1647 million from 955 mllion.
While announcing the results SpiceJet CFO, Patha Sarathi Basu, said "Despite 14.5% increase in fuel cost during the quarter as compared to last year, we have been successful in delivering operational break even, as per our plan, controlling our fuel cost per ASK growth of only 9%. Our total cost for the quarter is at Rs2.52 per ASK which includes Rs1.20 per ASK on account of fuel - which we believe is amongst the lowest in the country. We have been able to reduce our costs, excluding fuel, by 10% compared to same quarter last year which is now at Rs1.32 per ASK.
We will remain focused on profitable and sustainable growth, cost control, improved yield and enhanced ancillary revenue."
Siddhanta Sharma , executive chairman, Spicejet, also announced that ''the
Board of Directors have approved booking of 10 aircrafts delivery slots (737-800) from Boeing Company. These deliveries will be from 2011 onwards. These deliveries would be in addition to 30 aircraft orders placed so far. SpiceJet is yet to formalize funding option for these 10 aircrafts. ''