SpiceJet’s Q4 net profit up 22% to Rs 56.3 cr

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Mumbai, May 28 (IANS) SpiceJet on Tuesday reported a 22 per cent rise in its net profit for the fourth quarter of 2018-19.

According to the airline, its net profit increased to Rs 56.3 crore in the three months ended March 2019, from Rs 46.2 crore reported for the corresponding period of 2017-18.

In the fourth quarter, SpiceJet’s 13 Boeing 737 MAX planes were grounded, as part of a worldwide ban on the aircraft.

The company said that reported quarterly profit does not include any form of reimbursements or compensation on the grounded aircraft and for which the company continues to work with the manufacturer.

However, on a full fiscal basis, the airline reported a net loss of Rs 316.1 crore in FY 2019 from a profit of Rs 557.2 crore reported during the previous fiscal.

“… This year saw a 25 per cent increase in aviation turbine fuel prices and 9 per cent depreciation of the Indian rupee that resulted in cost escalations of Rs 695 crore and Rs 285 crore, respectively,” an airline statement said.

Currently, SpiceJet operates to 53 domestic and nine international destinations. It is the largest regional player in the country with 42 daily UDAN flights and operates to 12 destinations under the regional connectivity scheme.

Since April 1, 2019, the airline has announced 106 new flights including 73 flights connecting Mumbai, 16 flights connecting Delhi and eight flights connecting Mumbai and Delhi, its fleet size stands at 100 and the company has hired over a thousand highly trained professionals to chart the next stage of its growth.

“SpiceJet has posted a strong recovery in last two quarters after suffering a loss of Rs 427.5 crore in the first two quarters due to steep increase in fuel costs and sudden depreciation of the rupee,” Ajay Singh, Chairman and Managing Director, SpiceJet was quoted as saying in the statement.

“This recovery comes despite the unprecedented challenges we faced during Q4 FY2019 which saw the grounding of as many as 13 of our MAX planes.”

“With a massive fleet expansion this fiscal, a favourable operating environment, a likely return of the B737 MAX in July, significant improvements in yields and prime slots at key airports, we are confident of a strong performance for FY2020.”

–IANS

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