SpiceJet Not Im­mune to Crunch, Net Falls 24%

The Economic Times - - Companies: Pursuit Of Profit - Our Bureau

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.

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