Shares of SpiceJet
pared all its early losses to gain over 1% after the aviation major on Friday reported its seventh straight quarter of profits with a profit of Rs 59 crore in the September quarter, a jump of 103% year-on-year.
The stock had tumbled nearly 3% in the early trade on the BSE.
The profit was driven by an increase in operating margins to 24% due to costs declining by 10%.
This performance came in spite of Q2 generally being the weakest quarter of the year and in the face of intense competition.
The airline's revenue rose 35% YoY to Rs 1,400 crore as its capacity grew 38% during the period. The average unit fare improved by 5% despite competitive pressure.
The airline recorded a passenger load factor of 92.3 per cent in Q2FY17, the highest in the industry. In fact, it has been increasing at the fastest pace for the past 19 months in a row and the load factor has been greater than 90% monthly since April 2015.
"We have resolved practically all our legacy issues and the stage is set for building up our cash reserves and finalising our long-term fleet expansion plans," said Chairman and Managing Director Ajay Singh in a statement.
operates 342 daily flights connecting 45 destinations, of which 39 are domestic deploying 31 Boeing 737NGs and 17 Bombardier Q-400s.