New Delhi: Budget airline SpiceJet Ltd said its profit doubled to Rs58.9 crore in the quarter ended September from Rs 29 crore in the year earlier.
The airline, which has a 13% share of the domestic market, reported a 35% rise in revenue to Rs.1,400 crore during the same period.
This is the seventh consecutive profitable quarter for SpiceJet after it recovered from a near shut down in December, 2014.
“This was the weakest quarter of the year and despite the intense competition in the market, SpiceJet has performed exceptionally well. We continue to focus on responsible and profitable growth,” Ajay Singh, chairman and managing director, Spicejet said in a statement.
Rival airlines too have reported profits helped by low oil prices, which make up nearly half the cost of an Indian airline.
Budget carrier IndiGo reported net profit of Rs139.84 crore for the quarter ended September 2016 on a revenue of Rs4,327.69 crore from a profit of Rs113.13 crore during the same time last year.
Jet Airways reported a net profit of Rs108.11 crore for the quarter ended 30 September on a revenue of Rs4,920.55 crore.
On average, SpiceJet made Rs65 lakh profit a day in the September quarter, IndiGo made Rs1.55 crore while Jet clocked Rs1.2 crore.
“Spicejet continues to do well..customer deliverables continue to improve significantly,” said Kapil Kaul, South Asia CEO for CAPA.
India’s domestic air traffic has been growing at more than 20% on the back of cheap fares and faster economic growth.
Airlines have been hit hard by the demonetisation drive which have forced them to bring airfare sales usually offered after 10th January into the peak third quarter. Bookings have dropped for some airlines by as much as 16%, Mint reported on 24th November.
CAPA's Kaul said the upcoming rush of planes into the Indian skies will remain a concern for SpiceJet. Most airlines are bringing dozens of planes over the next few months that could result in even more cheaper fares on some routes hurting revenues per passenger.
“We remain concerned with the impact of serious capacity induction on industry financials from Q3 FY17. Maintaining yields will be challenging,” he said referring to SpiceJet.
SpiceJet stock rose 1.48% on BSE on Friday to end at Rs65.35 on a day the Sensex gained 1.76% to end at 26,316.34 points.