India's third largest airline has just reported net profit of Rs 240 crore for the third quarter (Q3) of this fiscal, up around 33% from the corresponding period in 2016-17. On an EBITDA basis, profit stood at over Rs 330 crore. This is not only the 12th successive profitable quarter for the low-cost airline, but reportedly also its highest-ever quarterly profit. Talk about a turnaround-in December 2014 it was nearly crippled with all its flights grounded.
"The strong quarterly results were aided by a higher passenger load factor and a healthy increase in passenger yields despite a substantial rise of 17% in crude oil prices, a one-time expense of Rs 25 crore and an inflationary increase of 3% in other costs. The company witnessed a 14% increase in its passenger yields (Revenue per Available Seat Kilometre) while its average domestic load factor was 95%. SpiceJet has recorded more than 90% load factor for 33 successive months, a feat unparalleled globally," the airline said in a release.
The total income from operations stood at Rs 2082 crore for Q3 FY18, a 27% jump year-on-year, while fuel costs grew 33% to Rs 631 crore. "12 successive profitable quarters, record aircraft orders, industry's best load factor, high on-time performance and constantly exploring new growth avenues, SpiceJet remains firmly on track on its long-term growth strategy," said Chairman and Managing Director Ajay Singh. The budget carrier currently enjoys a market share of 12.7% (as of December 2017).
According to the airline, before December 2018, it plans to add 12-15 Boeing 737 aircrafts and 6-9 Bombardier Q400 aircrafts to its existing fleet of 38 Boeing and 22 Bombardier Q400 aircrafts. Then there is the standing order for the new Boeing 737 Max aircrafts-reportedly scheduled to be delivered in the second quarter of the coming financial year-that Ray Conner, Vice Chairman, The Boeing Company last year claimed would "allow SpiceJet to profitably open new markets, expand connectivity within India and beyond, and offer their customers a superior passenger experience."
No wonder Singh so confidently said that he aims to make the airline an international level carrier with long-haul flights in the next one or two years while in Davos for the World Economic Forum's annual meet. SpiceJet already flies to seven international short-haul destinations.
The shares of the company closed at Rs 133.50 today, up 3% on the BSE in a day.
With agency inputs