New Delhi: SpiceJet reported a net profit of Rs 55.1 crore for the quarter ending December 31, 2018, defying the current market conditions, where other airlines are losing money, announced the airline on February 11.
The airline said that passenger yields increased by 8pc that partially helped offset record high cost due to an increase of 34 per cent in crude oil prices and 11 per cent depreciation of the Indian Rupee against the US dollar. However, the airline's profit during the quarter fell by 77pc over the same period last fiscal, when the airline had registered profits of Rs 240 crore.
"The combined effect of these cost escalations was approximately Rs 329 crore. The Company also reversed some portion of its provisions on its foreign exchange obligations taken during the previous quarter for this financial year," the airline said.
During the quarter, total income stood at Rs 2,530.8 crore as against Rs 2,096.1 crore in the same quarter last year. For the same comparative period, expenses were Rs 2,475.8 crore as against Rs 1,856.1 crore.
The company feels that the financial performance will improve as macro conditions have improved.
"Despite the huge cost escalation in ATF and exchange rate, SpiceJet has done remarkably well thanks to our superior revenue performance, tight control on other costs and the continued confidence our passengers have shown in the airline. With a strong improvement in the macro cost environment and the increasing induction of the fuel efficient MAX aircraft, the outlook looks stronger than it has over the past year," Ajay Singh, CMD, SpiceJet said.
"With sector headwinds having subsided, we are bullish on our future prospects and will continue to invest aggressively in creating capacity in line with our forecasts. The new generation 737MAX aircraft with its cost efficiencies and increased revenue opportunities (due to superior payload performance) will become a substantial portion of our Boeing fleet further improving our margins. The increased seating capacity on the Bombardier Q400s will also result in improved margins," he added.
SpiceJet has added 12 new planes - nine Boeing 737 MAX 8 aircraft and three Q400s - between October and December 2018 and now operates a fleet of 72 aircraft.