India’s Spicejet posts 22% jump in Q4 profit, sees strong year ahead

(Bangaluru) REUTERS: Indian budget airline Spicejet Ltd posted a 22 percent jump in fourth-quarter profit yesterday, as it flew more customers and was able to raise prices at a time when the industry benefited from the collapse of Jet Airways.

Indian carriers, including budget airlines Spicejet and Interglobe Aviation Ltd’s Indigo, have been taking advantage of debt-laden Jet’s downfall, adding flights and routes and raising fares in response to a drop in capacity.

“(With) significant improvements in yields and prime slots at key airports, we are confident of a strong performance for FY2020,” Chairman and Managing Director Ajay Singh said in a statement.

Spicejet said it added 25 aircraft in April and May. Jet started grounding planes at the beginning of the year and was eventually forced to stop operations in April.

Spicejet said yesterday it would add 35 aircraft to its fleet by fiscal 2020 and that average fare rose 11 percent and capacity increased 21 percent in the reported quarter.

Standalone net profit, excluding earnings of units Spicejet Merchandise, Spicejet Technic and Canvin Real Estate, reached 562.9 million rupees (US$8.08 million) in January-march, from INR 461.5 million in the same period a year earlier.