Budget airline SpiceJet has reported INR 56.3 crores as profit, a 22% year-on-year growth, for the quarter ended in March 2019. Revenue from operations was registered at INR 2531.2 crores in Q4, marking an increase of 25.3%. The capacity of the airline, in terms of seat per kilometre, increased 21%, and the average airfare increased by 11%.
Commenting on the company’s financial performance, Ajay Singh, Chairman and Managing Director said, SpiceJet has posted a strong recovery in last two quarters after suffering a loss of Rs 427.5 crore in the first two quarters due to a steep increase in fuel costs and sudden depreciation of the rupee. This recovery comes despite the unprecedented challenges we faced during Q4 FY19 which saw the grounding of as many as 13 of our MAX planes.
EBITDA increased 55.3% year-on-year to INR 110.4 crores, and margin expanded 90 bps to 4.4% in Q4. However, considering the FY2019 as a whole, the airline reported a loss of INR 316 crores, primarily due to the decline in the first two quarters.
SpiceJet shares ended 1.5% higher at INR 148 on BSE.
SpiceJet is confident of making more profits in the upcoming quarter. It is aiming a massive expansion plan, and there is a likely return of B737 Max aircraft. Besides, the grounding of Jet Airways has provided the airline with prime slots at key airports.
SpiceJet added 25 aircraft in April and May 2019. The fleet size recently touched 100. The airline intends to add another 35 aircraft by 2020, increasing the total capacity for FY2020 by 80%. SpiceJet is currently the third largest domestic carrier after IndiGo and Air India. It occupies a market share of 13.3%, according to the recently released report of the Directorate General of Civil Aviation (DGCA).
Also Read: SpiceJet to Add 100th Aircraft to Its Fleet
Ria is a lead news writer at Aviation Scoop. She writes from dawn to dusk, reads in the evenings, and draws at some ungodly hours. She loathes human interaction, and finds solace in the sweet, musky smell of old books, and rain. Find her on Twitter here - @rialakshman.