The FINANCIAL -- SpiceJet reported a profit of INR 239.99 crore for the three months ended December 31st, 2017 as against INR 181.14 crore in the same quarter last year, making it the 12th successive profitable quarter for the airline.
Profits grew by 32% against a capacity growth of 14% during this period as against the same quarter last year.
The strong quarterly results were aided by a higher passenger load factor and a healthy increase in passenger yields despite a substantial rise of 17% in crude oil prices, a one-time expense of Rs. 25 crores and an inflationary increase of 3% in other costs. The Company witnessed a 14% increase in its passenger yields (Revenue per Available Seat Kilometer) while its average domestic load factor was 95%. SpiceJet has recorded more than 90% load factor for 33 successive months, a feat unparalleled globally, according to SpiceJet.
SpiceJet reported an operating revenue of INR 2,081.95 crore in the quarter. On an EBITDA basis, SpiceJet reported a profit of INR 330.73 crore. On an EBITDAR basis, the Company reported a profit of INR 597.04 crore.
Ajay Singh – CMD, SpiceJet said, “Twelve successive profitable quarters, record aircraft orders, industry’s best load factor, high on-time performance and constantly exploring new growth avenues – SpiceJet remains firmly on track on its long term growth strategy. This has been yet another great quarter for us and I am very pleased with the exceptional performance of my team.”
With many firsts to its credit for the October-December quarter, SpiceJet became the only airline to commence daily direct operations on the international sector of Ahmedabad-Bangkok. It was also the only player to introduce daily non-stop flights on Delhi-Jodhpur, Jaipur-Jodhpur, Ahmedabad-Varanasi, Kolkata–Jabalpur, Bengaluru–Puducherry and Bengaluru-Bagdogra sectors among others. On UDAN, the Company secured additional 20 routes that will further increase its foot print in regional operations. Some of the exclusive routes awarded to SpiceJet include Delhi-Darbhanga, Mumbai-Darbhanga, Delhi-Pakyong, Chennai-Tanjore, Delhi-Kishangarh among others. The company is close to starting its Delhi-Adampur and Delhi-Kanpur UDAN flights.
The quarter also witnessed SpiceJet, the country’s largest regional player, conduct successful seaplane trials in Mumbai and Vijayawada and launch its fourth flight under UDAN connecting Jaipur-Jaisalmer.
Key Business Updates
The Company is building its own training campus for its proposed expansion which will reduce its training costs by 50% in addition to consolidating its training operations.
Before December 2018, the company plans to add 12-15 Boeing 737 aircraft and 6-9 Bombardier Q400 aircraft to its existing fleet of 38 Boeing and 22 Bombardier Q400 aircraft. The new generation Boeing 737 Max aircraft will start delivering from August 2018 that will reduce the overall costs by around 8-9% on each aircraft. On the Bombardier Q400 aircraft, which starts delivering from September 2018, the seat count has been increased to 86 seats (from the current 78 seats). This will enhance the seats flown in the regional and UDAN routes.