SpiceJet flies to 788% net profit growth in the first quarter

posted on 13th August 2019 by Justin Burns
SpiceJet flies to 788% net profit growth in the first quarter

SpiceJet has reported its profit soared by a massive 788 per cent in the first quarter of 2019, on the back of increasing capacity and demand.

The Indian carrier’s net profit came in at INR 261.7 crore (US$36.6 million) and total income of INR 3,145.3 crore for the quarter ending June 2019, as against a loss of INR 38.1 crore and INR 2,253.3 crore for the same quarter last year.

The quarterly results came despite the airline having to ground its 13 Boeing 737 Max aircraft and it said it “remain stressed” in the quarter. It inducted 32 aircraft during the quarter, that included 27 Boeing 737 NG aircraft and four Bombardier Q400s .

To cope with the ongoing suspension, SpiceJet said it plans to cater to the winter season by inducting a further five to 10 Boeing 737 NG aircraft and three Q400 aircraft during October 2019.

In the first quarter, operating revenues were up 35 per cent to INR 3,002.1 crore against INR 2,220.4 crore for the corresponding quarter last year.

Capacity in terms of seat kilometres was up 31 per cent, passenger fares were up 11 per cent. The domestic load factor was 93.8 per cent, a record.

SpiceJet chairman and managing director, Ajay Singh said: “SpiceJet has been on a spectacular growth journey and this quarter, in particular, has been very special for us. We added 32 aircraft to our fleet expanding at a pace unprecedented for a sector plagued by crisis showcasing our robust business model and proven operational capabilities.

“We are happy that we were able to minimise passenger inconvenience by quickly filling the capacity gap created in India’s aviation sector. The results would have been vastly better but for the painful grounding of the MAX aircraft. We look forward to their swift return to service in the near future that will help SpiceJet increase its margins and provide a superior level of service.”

Between April and June 2019, SpiceJet added 32 aircraft – 27 Boeing 737 NG aircraft, four Bombardier Q400s and one B737F. At the end of the reported quarter, SpiceJet’s fleet size stood at 107 which included 73 Boeing 737 NG aircraft, 31 Q400s and three B737Fs.