Spicejet Q3 net profit plunges 77%
MUMBAI: Budget carrier Spicejet on Monday reported a massive 77% fall in its net profit at ₹55 crore owing to higher aviation fuel cost and rupee depreciation.
The Gurugram-based airline had posted a net profit of ₹240 crore in the year-ago period, a company statement said.
Total income stood at ₹2,530.8 crore for the quarter as against ₹2,096.1 crore in third quarter FY18, it said.
A strong 8% increase in passenger yields helped the airline partially offset record high cost due to 34% increase in crude oil prices and 11% depreciation in rupee.
“Despite the huge cost escalation in ATF (aviation turbine fuel) and exchange rate, Spicejet has done remarkably well thanks to our superior revenue performance, tight control on other costs. With a strong improvement in the macro cost environment and the increasing induction of the fuel efficient MAX aircraft, the outlook looks stronger than it has over the past year,” Spicejet chairman Ajay Singh said.spiceJet continues to pursue ambitious growth plans as it introduces new maiden flights, lead the regional connectivity scheme UDAN initiative of the government, add new aircrafts and explore newer growth avenues, while keeping our costs under check, he said.
“With sector headwinds having subsided, we are bullish on our future prospects and will continue to invest aggressively in creating capacity in line with our forecasts,” Singh added. “The new generation 737 MAX aircraft with its cost efficiencies and increased revenue opportunities (due to superior payload performance) will become a substantial portion of our Boeing fleet further improving our margins. The increased seating capacity on the Bombardier Q400s will also result in improved margins,” he said. The airline said that its average fares were up 25% over the July-september quarter of the current fiscal while it the passenger load factor stood at 91.6% during the reporting quarter.