SpiceJet registers 10th consecutive profitable quarter

SpiceJet registers 10th consecutive profitable quarter

SpiceJet registers 10th consecutive profitable quarter

The FINANCIAL -- SpiceJet reported a profit of INR 175 crore for the three months ended June 30th, 2017 as against 149 crore in the same quarter last year, making it the 10th successive profitable quarter for the airline.

The profits grew by 18% during this period.

Operating revenues were INR 1869 crore for the said quarter as against INR 1521 crore for the same quarter last year. On an EBITDA basis, SpiceJet reported a profit of INR 248 crore as against INR 215 crore in the same quarter last year, according to SpiceJet.

In terms of operational parameters, SpiceJet had the best passenger load factor amongst all airlines in the country during the quarter. The company witnessed a 9% increase in its passenger yields while its average load factor was 94.07%. SpiceJet has recorded more than 90% load factor for 27 successive months, a feat unparalleled globally.

SpiceJet, which placed its biggest order yet for up to 205 Boeing airplanes valued at up to USD 22 billion earlier this year, also placed an additional order for 20 737 MAX 10 planes worth USD 4.7 billion and 20 conversions from the previous order at the Paris Air Show in June 2017. The airline has also placed an order to buy up to 50 Q400 turboprop planes with Bombardier to consolidate its footprint in the regional markets.

SpiceJet’s massive aircraft order with Boeing came in for special mention by US President Donald Trump during a joint press conference alongside Prime Minister Narendra Modi at the White House for creating thousands of jobs in the US. President Trump’s comments were reiterated by US Vice President Mike Pence while addressing the 42nd annual gathering of the US-India Business Council (USIBC).

“From being on the brink of a near shutdown to being lauded for creating thousands of jobs in the world’s largest economy within a span of mere ten quarters, exemplifies SpiceJet’s amazing turnaround. We had an eventful quarter as we took off under the UDAN scheme and launched operations on two routes,” said Mr. Ajay Singh – CMD, SpiceJet.

``Ten successive profitable quarters, a record aircraft order and exploring new growth avenues through the UDAN program - SpiceJet remains firmly on track for its long term growth strategy,” he added.

SpiceJet has launched its flights on the UDAN routes of Mumbai-Porbandar-Mumbai and Mumbai-Kandla-Mumbai, while flights on the Hyderabad-Pondicherry-Hyderabad route are scheduled to take-off from August 16, 2017. This quarter, the airline increased its regional capacity by 20% by adding three Q400 to its fleet.

The last quarter also saw the airline launch its new retail venture, ‘SpiceStyle’ offering more than 12 fashion and lifestyle brands under its portfolio. This will provide a fresh impetus to its ancillary revenues which has grown to 17% from 6% in the last two years.

SpiceJet plans to add around six Boeing 737 Next Generation aircraft during Q3 and Q4 and expand its Bombardier fleet by adding two more Q400s. SpiceJet has been awarded six proposals and 11 routes under the first phase of the UDAN Regional Connectivity Scheme. During the current quarter, SpiceJet will start operations in the remaining sectors under the UDAN scheme, namely Kanpur, Adampur and Jaisalmer, making flying possible for more passengers.