SpiceJet profit rises 18%

SpiceJet recorded a profit of ~175.23 crore in the quarter ended June — a jump of 18 per cent from ~149.03 crore in the corresponding period last year.

The airline attributed it to a healthy passenger load and stronger yield. Average fare for the airline increased by nine per cent to ~3,943 from ~3,601 during the same period last year.

The Ajay Singh-led airline’s total income from operations in the period was ~1,889.40 crore, higher than ~1,543.96 crore earned during the same period last year. However, fuel cost increased to ~534.37 crore this quarter over ~399.68 crore in Q1 of FY17.

SpiceJet clocked passenger load factor (PLF) of 93 per cent during all three months in this quarter. It witnessed a nine per cent increase in passenger yields while average load factor was 94.07 per cent.

The airline, said that SpiceJet plans to add around six Boeing 737 Next Generation aircraft during Q3 and Q4 and expand its Bombardier fleet by adding two more Q400s. “SpiceJet has been awarded six proposals and 11 routes under the first phase of the UDAN Regional Connectivity Scheme. During the current quarter, SpiceJet will start operations in the remaining sectors under the scheme, namely Kanpur, Adampur and Jaisalmer, making flying possible for more passengers,” the firm said.

“From being on the brink of a near shutdown to being lauded for creating thousands of jobs in the world’s largest economy within a span of mere 10 quarters, exemplifies SpiceJet’s amazing turnaround. We had an eventful quarter as we took off under the UDAN scheme and launched operations on tworoutes,” said Ajay Singh, chairman and managing director, Spice Jet. “Ten successive profitable quarters, a record aircraft order and exploring new growth avenues through the UDAN programme — SpiceJet remains firmly on track for its long-term growth strategy,” he added. The SpiceJet scrip closed at ~119.05 down by 5.18 per cent against the benchmark index which fell by 0.84 per cent.