SpiceJet continues to soar, Q4 profit up 10.8% to Rs46.1 crore
A rise in passenger yields and a record load factor pushed SpiceJet’s Q4 profit to Rs46.1 crore, up 10.8% from last year, and full-year profit to Rs557.20 crore
New Delhi: Low-cost carrier SpiceJet Ltd on Friday posted Q4 profit of Rs46.1 crore, up 10.8% from last year, helped by a rise in passenger yields and a record load factor.
SpiceJet has reported a profit for 13 consecutive quarters since co-founder Ajay Singh took over leadership of the airline in 2015, at a time when it the was on the verge of shutting down.
The airline’s revenue stood at Rs2,090.74 crore in the January-March period, up 25% from Rs1,673.61 crore a year earlier.
During the March quarter, there was a 12.7% hike (on an annual basis) in crude oil prices that impacted the bottom line by about Rs81.4 crore, SpiceJet said in a statement.
“The company registered an 8% increase in yield which helped in maintaining operational profits,” the statement added.
The airline recorded a 95.4% average domestic load factor—a measure of capacity utilization—for the January-March quarter, and 94.7% during 2017-18.
On a consolidated basis (including results of the airline’s non-aero units such as SpiceJet Merchandise and SpiceJet Technic, the airline reported a net profit of Rs40.51 crore for the January-March 2018 quarter.
Consolidated net profit for the full year was Rs557.20 crore, up from Rs427.23 crore a year ago.
“Despite rising fuel prices, SpiceJet continues to record profits and has recorded the highest annual profit in its history,” chairman and managing director Singh said in the statement.
“With the fuel-efficient (Boeing) B737 MAX joining our fleet in the coming months, we will continue to expand at home and abroad and strive to improve profitability and operating performance,” Singh added.
On a standalone basis, SpiceJet reported a profit of Rs566.66 crore for FY18, up 31.56% from the previous year. Standalone revenue for the year was Rs7,932.41 crore, up from Rs6,303.81 crore the previous year.
SpiceJet said it would induct 19 Boeing 737 MAX aircraft during FY 2019. The move is expected to bring down costs by 8-9%.
It will also induct eight new Bombardier Q400s aircraft with additional seats which is expected to improve the overall operating economics of the aircraft by 15-18%, the airline added in the statement.
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