SpiceJet flies its way to profit in Dec qtr
A 29 per cent rise in yield per passenger, fuel cost optimisation and better fleet utilisation enabled low cost carrier SpiceJet reported net profit of Rs 102 crore for the quarter ended December 31, 2012 (Q3), compared to a loss of Rs 39 crore during the corresponding period last year.
The airline had reported a net loss of Rs 163 crore for the second quarter ending September 30, 2012.
SpiceJet’s revenues for Q3 were up 37 per cent at Rs 1,602.64 crore, up from Rs 1,172.83 crore for the period ended December 31, 2011. The airline saw a 2 per cent fall in domestic passengers, while international business was up 80 per cent.
The increase in yield per passenger went up from Rs 3,421 in the third quarter of last fiscal to Rs 4,412 in Q3, the company said in a filing with the Bombay Stock Exchange. The fuel cost as proportion of total cost fell from 50 per cent in the third quarter of fiscal 2012 to 45 per cent in Q3. The airline said it increased its share in the domestic passenger market from 16.80 per cent in December 2011 to 19.20 per cent in December 2012.
The company’s CEO Neil Mills said: “To announce a profit of Rs. 102 crore for the third quarter in the current challenging environment is a huge achievement and clearly demonstrates that the strategic changes that
SpiceJet have made in the last two years have created a platform for future success of the company.”
SpiceJet operates about 330 flights daily to 42 Indian cities and 7 international destinations. The carrier also expanded its international network By adding new flights between Kochi-Male, Kochi-Dubai and Dubai-Ahmedabad.
The company’s share price closed at Rs 46.15 on the BSE on Monday, up 5.01 per cent from its previous close.