Forbes India 15th Anniversary Special

SpiceJet clocks tenth consecutive quarterly profit

The airline reported a 18 percent rise in profit and a 23 percent growth in revenue in the April to June period

Published: Aug 10, 2017 06:36:56 PM IST
Updated: Aug 10, 2017 07:03:20 PM IST

SpiceJet clocks tenth consecutive quarterly profit
Image: Amit Dave/ Reuters

Higher passenger yields and robust load factor numbers enabled SpiceJet to report its tenth successive quarterly profit in the April to June period of the ongoing fiscal. SpiceJet, India’s fourth largest airline by market share, saw its profit rise by 18 percent to Rs 175 crore over same quarter a year ago.

On an EBITDA basis, the airline reported a profit of Rs 248 crore as against Rs 215 crore reported in the first quarter of fiscal 2017. Operating revenues in the period under review stood at Rs 1,869 crore, a 23 percent growth over the same period a year ago. The airline reported a 9 percent increase in passenger yields, while its average load factor was 94.07 percent.

“From being on the brink of a near shutdown to being lauded for creating thousands of jobs in the world’s largest economy within a span of mere ten quarters, exemplifies SpiceJet’s amazing turnaround,” said Ajay Singh, chairman and managing director, SpiceJet.

“Ten successive profitable quarters, a record aircraft order and exploring new growth avenues through the UDAN program - SpiceJet remains firmly on track for its long-term growth strategy,” added Singh.

In the April to June period, SpiceJet launched two new routes — Mumbai to Porbandar and Mumbai to Kandla — under the government’s regional connectivity scheme UDAN. A third route, Hyderabad to Pondicherry, will commence from August 16. Overall, the airline increased its regional capacity by 20 percent in the quarter. SpiceJet was awarded 11 routes under the first phase of UDAN.

The airline said that in the following quarters it would add around six Boeing 737 Next Generation aircraft and expand its Bombardier fleet by adding two more Q400 aircraft. The airline’s share price was down 5.18 percent to Rs 119.05 a piece at the close of trade on Thursday.