SpiceJet Not Immune to Crunch, Net Falls 24%
New Delhi: SpiceJet on Tuesday announced a profit of .₹ 181.1 crore for the quarter ending December 31, 2016, a decline of 24% over the same period last year.
The airline had registered a profit of .₹ 238.4 crore during the same period last year. It said that the decline is due to demonetisation and oil prices inching up, which impacted demand. The profits were also impac- ted by volatile foreign currency fluctuations.
“Biggest reason for our decline in profits is demonetisation along with rising oil prices and exchange rate fluctuations,” SpiceJet chairman Ajay Singh said. “The situation (relating to demonetisation) is improving and it will take another two to three months for international travel to pick up again,” Singh said.
During the third quarter, the airline reported a 29% increase in its fuel bill at .₹ 4,737 crore, although exclu- ding fuel costs, all other costs were down 4%, while income from other sources is up 13%, said Singh.
Ancillary revenues stood at 16% during the third quarter, which the airline hopes to push beyond 20% by the end of fiscal 2018. The airline reported operating revenue of .₹ 1,642.4 crore, an increase of 17.2% during the same period last year. During the third quarter, the airline operated a fleet of 49 aircraft, up from 41 in the same quarter previously, while it carried 3.48 million passengers compared with 2.85 million during the same period previously.
Going ahead, the airline expects to induct 7-8 Boeing aircraft and 4-5 Bombardier during the year to take care of the growing demand in travel. The aircraft, which should be inducted within the next 4-5 months, will be for the short term till such time as the delivery of the 205 Boeing aircraft ordered by the airline begins.