SpiceJet turns in first annual profit

SpiceJet, the low-cost air carrier, ended 2009-10 with a net annual profit of Rs 61.4 crore as compared to a loss of Rs 352.5 crore during 2008-09. This is the first year since its inception in May 2005 when it has made a profit.

Better yields and cost cuts helped SpiceJet to post a profit of Rs 27.5 crore in the fourth quarter ending March 31. The airline had incurred losses of Rs 7.8 crore during the same period in 2008-09.

Even though there was no fare hike announced in the fourth quarter of the last financial year, the airline registered 34 per cent growth in operating revenue to Rs 587 crore. For the full year, the airline registered an increase in operating revenue by 29 per cent to Rs 2,242 crore.

The New Delhi-registered airline, with a market share of 12.3 per cent (in 2009-10), is the second-largest low-cost carrier in terms of market share. It registered a 44 per cent growth in the number of passengers for the year and 22 per cent increase for the quarter.

“SpiceJet expects the demand scenario to continue to remain robust during 2010-11 and expects a 14-16 per cent domestic demand growth in the industry. The airline plans to induct five aircraft during this year,” said a statement from the airline.

SpiceJet recently got approval to fly to Maldives, Bangladesh and Nepal and “the airline is in the process of planning and launching service to these countries,” added the release.