SpiceJet reports Rs71.8 crore Q1 net profit
29 July 2015
No-frills airline SpiceJet Ltd has reported a net profit of Rs71.8 crore ($11.2 million) for the three months ended 30 June 2015, booking profit for a second consecutive quarter.
Gurgaon-based SpiceJet had reported a net profit of Rs22.5 crore during January-March 2015, after reporting a net loss of Rs124.1 crore during the comparable quarter of the previous fiscal.
India's second-biggest budget carrier by market share, said it cut costs and flew more passengers after the new management pumped in over Rs1,500 crore into the loss-making carrier.
SpiceJet, which earned its first quarterly profit since 2013 in January-march 2015, is in the midst of a recovery plan after it almost collapsed late last year.
"This is the second consecutive profitable quarter and I am proud of what we have achieved. But there is still a long way to go. I am confident that the best is still ahead of us," SpiceJet Ltd chairman Ajay Singh was quoted in a release.
Under new chairman Ajay Singh, who took over reins from erstwhile promoter Kalanithi Maran, the airline has cut routes and costs. Its capacity is down a third since last year.
However, its load factor - the percentage of its carrying capacity - rose to 89.8 per cent in the quarter, a rise of almost 15 per cent from last year.
"The airline recorded a load factor of 89.8 per cent for the quarter, the highest in the industry. This load factor reflects an increase of 14.8 per cent over the same period last year. In line with year-on-year capacity reduction of 33 per cent that was driven by fleet reductions in late 2014, the airline's revenue for the quarter was down 34 per cent relative to same period last year," the airline said.
SpiceJet shares jumped after news of the results, ending up 7.4 per cent as the wider market fell 0.4 per cent.