SpiceJet posts significant quarterly profit

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spicejet airlines

spicejet airlinesSpiceJet has continued to successfully deliver passenger growth in the quarter and delivered a profit of Rs. 102 crore for the quarter vs a loss of Rs. 39 crore in the same period the prior year.

With better fleet optimization, an altered route mix (thanks to more international flights) and higher yields, fuel cost as a proportion fell to 45% of the total revenue in the current quarter as against 50% in the comparable quarter for the previous year. Notwithstanding this improvement, which certainly augurs well for civil aviation sector in the country, the fact remains that the Indian airline industry continues to bear the brunt of extremely high incidence of taxation. A weighted average tax rate of 24% on ATF prices across various stations in India is among the highest in the world and constitutes the biggest hurdle for domestic carriers in their quest for long term profitable growth.

Revenue for the third quarter ended December 31, 2012 increased by 37% to Rs. 1,603 crore as compared to Rs. 1,173 crore of the corresponding quarter a year ago.

The average passenger yields in the quarter increased 29% as compared to the corresponding quarter a year ago.

Domestic market share in December 2012 increased to 19.20% from 16.80% in December 2011.

Neil Mills, Chief Executive Officer, 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 has created a platform for future success of the company.”

Highlights for the quarter ended December 31, 2012 vs December 31, 2011

Operational – Total

  • 7% growth in number of passengers
  • 18% growth of Available Seat Kilometers
  • 25% growth in number of departures

 Financial

  • 37% increase in Revenue from Operations
  • 29% increase in passenger yields to Rs. 4,412 from Rs. 3,421
  • Net profit of Rs. 102 crore for the quarter compared to a Net loss of Rs. 39 crore

International

  • 80% growth in number of passengers
  • 129% growth in number departures

 Domestic – Boeing

  • 2% reduction in number of passengers
  • 7% growth in number of departures

 Regional

  • 82% growth in number of passengers
  • 89% growth in number of departures