SpiceJet Q4 net profit jumps 22% to Rs 56.3 cr on higher ticket revenue

SpiceJet has added 25 planes to its fleet and plans to include 35 more this financial year, said officials of the low-cost carrier. 

The airline on Tuesday reported a 22 per cent jump in net profit at Rs 56.3 crore in the quarter ended March 31 despite grounding of its Boeing 737 MAX aircraft. The rise in profit is aided by higher ticket prices. It had posted a profit of Rs 46.2 crore in the last quarter of FY18. Its capacity (in terms of seat kilometer) saw a 21 per cent rise while average fare rose 11 per cent. The airline reported a net loss of Rs 316.1 crore in the Q4FY19.

Airline’s Chairman and Managing Director Ajay Singh said: “SpiceJet has posted a strong recovery in the 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 in Q4FY19, which saw the grounding of as many as 13 of our MAX planes.”

SpiceJet took advantage of Jet Airways collapse as it inducted 22 of the grounded planes to ramp up its capacity, and has plans to induct up to 40 aircraft.

“The deals we have for Jet are primarily for those having a lower maintenance cost. We will not be exposed to any additional maintenance cost more than which will be required. We just pay for the usage of aircraft,” said firm’s CFO Kiran Koteshwar. The airline has started business class services, but Koteshwar said it would review the viability once the peak season ends.

“We are low-cost by heart. We have not launched a business class project. We didn’t want to ground the aircraft. After the peak season is over, after June and July, we will take a look to continue with the business class or not. All our new planes will be 189 seaters,” Koteshwar said.