SpiceJet continues to soar, Q4 net profit rises 10.8%

NEWDELHI:Low-cost carrier SpiceJet Ltd on Friday posted March quarter net profit of ₹46.1 crore, up 10.8% from last year, helped by a rise in passenger yields and a record load factor.

SpiceJet has reported a profit for 13 consecutive quarters since co-founder Ajay Singh took over leadership of the airline in 2015, at a time when it was on the verge of shutting down.The airline’s revenue stood at ₹2,090.74 crore in the January-March period, up 25% from ₹1,673.61 crore a year earlier. During the March quarter, there was a 12.7% hike (on an annual basis) in crude oil prices that impacted the bottom line by about ₹81.4 crore, SpiceJet said in a statement.

“The company registered an 8% increase in yield which helped in maintaining operational profits,” the statement added.

The airline recorded a 95.4% average domestic load factor—a measure of capacity utilization— for the January-March quarter, and 94.7% during 2017-18.

On a consolidated basis (including results of the airline’s non-aero units such as SpiceJet Merchandise and SpiceJet Technic, the airline reported a net profit of ₹40.51 crore for the January-March 2018 quarter.

Consolidated net profit for the full year was ₹557.20 crore, up from ₹427.23 crore a year ago.

“Despite rising fuel prices, SpiceJet continues to record profits and has recorded the highest annual profit in its history,” chairman and managing director Singh said in the statement.

“With the fuel-efficient (Boeing) B737 MAX joining our fleet in the coming months, we will continue to expand at home and abroad and strive to improve profitability and operating performance,” Singh added.