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SpiceJet Q4 profit rises 22% despite Jet crisis

NEW DELHI: Low price SpiceJet has reported a profit of Rs 56.three crore for the quarter ended March 31, 2019, up 22% from Rs 46.1 crore in Q4 FY-18. In full fiscal 2018-19, the airline misplaced Rs 316.1 crore, versus a profit of Rs 566.6 crore in the previous financial 12 months. The airline’s scrip closed 2.1% up at Rs 148.8 on BSE, before touching a brand new 52-week-high of Rs 153 all over intra-day trade on Tuesday.

Despite home airfares mountain climbing sharply since February when Jet Airways started cancelling flights majorly (before postponing operations completely on April 17), SpiceJet — unlike IndiGo — could no longer fully capitalise on that in Q4 as 13 of its Boeing 737 Max were grounded on March 13 and nonetheless remain so due to a ban of flying of this plane globally. Still it saw its operational source of revenue in the January-March, 2019, quarter at Rs 2,571.8 crore, up 23.7% from Rs 2,079.5 crore in previous quarter final fiscal.

However as soon as Jet close down, SpiceJet used to be the most important beneficiary when it comes to getting its slots, planes and these days operates about 20 ex-Jet B737s and could double this number soon. The airline, which had 76 planes on March 31, 2019, plans to add 80% capability by way of inducting 60 planes in FY2020.

SpiceJet CMD Ajay Singh stated the LCC “has posted a powerful restoration in final two quarters after struggling a loss of Rs 427.5 crore in the first two quarters due to steep increase in gas prices and sudden depreciation of the Rupee. This restoration comes regardless of the exceptional challenges we faced all over Q4 FY2019 which saw the grounding of as many as 13 of our MAX planes.”

“With a massive fleet expansion this fiscal, a favourable running environment, a most probably go back of the B737 Max in July, vital enhancements in yields and top slots at key airports, we are assured of a powerful efficiency for FY2020,” Singh added.

Once the March 13 order for grounding of B737 Max got here, SpiceJet stated it “rapidly moved by way of mounting additional frequencies, inducting planes on rainy lease and rationalising and optimising the usage of its current fleet.” Fiscal 2018-19 12 months saw a 25% increase in aviation turbine gas prices and 9% depreciation of the Indian rupee that ended in price escalations of Rs 695 crore and Rs 285 crore, respectively, it added.

“Since April 1, 2019, the airline has announced 106 new flights together with 73 flights connecting Mumbai, 16 flights connecting Delhi and eight flights connecting Mumbai and Delhi. The fleet dimension stands at 100 and the corporate has employed over 1,000 extremely trained execs to chart the next level of its expansion. The company has robust systems and processes to scale its operations, which used to be demonstrated because it added 25 airplanes in 30 days,” the airline stated.

The LCC’s reasonable home load issue for the quarter used to be 92.58% while for fiscal 2019 it used to be 93%. “For 49 months in a row, SpiceJet has flown the absolute best load components in the Indian aviation marketplace, a feat remarkable globally,” it added.

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