SpiceJet profits double
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SpiceJet’s resurgence continued in the second quarter of its financial year, as the Indian low-cost carrier doubled its profits.
For the three months to 30 September 2016, SpiceJet posted a net profit of INR589 million (US$8.6m), compared to INR290m in the same period last year – an increase of 103%.
The airline’s operating revenue for the quarter stood at INR1.4 billion, up 35% year-on-year, which reflected a 38% increase in the airline’s seat capacity.
This marked the seventh consecutive profitable quarter for SpiceJet, following the challenges that threatened the company’s existence in late 2014. Since then however, a turnaround plan combined with low fuel prices and the strength of the Indian aviation sector have allowed SpiceJet to transform its fortunes.
“This was the weakest quarter of the year and despite the intense competition in the market, SpiceJet has performed exceptionally well,” said Ajay Singh, chairman & managing director of SpiceJet. “We have resolved practically all our legacy issues and the stage is set for building up our cash reserves and finalising our long-term fleet expansion plans.”
SpiceJet recorded a passenger load factor of 92.3% during the quarter, which marked the highest of any Indian carrier, while the carrier also led the industry in terms of on-time performance.
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