SpiceJet reported a profit of Rs 56.3 crore for the quarter ended March 31, 22% higher than Rs 46.2 crore it had earned during the year-ago period, helped by the grounding of rival Jet Airways.
The Gurgaon-headquartered low-cost airline reported a net loss of Rs 316.1 crore for the entire 2018-19, however, primarily on account of the huge losses it had incurred during the first two quarters of the financial year.
Revenue from operations for the quarter was up 25% year-on-year to Rs 2,531.3 crore on the back of 11% increase in average fare. On an EBITDAR basis, the profit was Rs 523.3 cro-re for the quarter, the airline said.
The airline said it managed to generate higher profits despite challenges on account of seasonality and, more importantly, grounding of its 13 MAX aircraft, which were taken out of operations in March after a problem with the computer system of the aircraft which led to an air crash. It said that it had not received any form of reimbursements or compensation for the grounded aircraft from Boeing yet and that it continued to work with the American manufacturer.
The airline said that it would mark a strong recovery now on the back of fleet expansion and return of Boeing 737 MAX aircraft.
“This recovery (in profits in the fourth quarter) comes despite the unprecedented challenges we faced during Q4 FY2019 which saw the grounding of as many as 13 of our MAX planes. With a massive fleet expansion this fiscal, a favourable operating environment, a likely return of the B737 MAX in July, significant improvements in yields and prime slots at key airports, we are confident of a strong performance for FY2020,” SpiceJet chairman Ajay Singh was quoted as saying in the statement.
