SpiceJet Q3 net profit down 24%

Budget passenger carrier SpiceJet on Tuesday reported a decline of 24.50 per cent in its net profit for the third quarter of Fiscal 2016-17.

The company's Q3 net profit stood at Rs 181.14 crore from Rs 239.94 crore reported in the corresponding quarter of 2015-16.

"We have reported our eighth successive profitable quarter despite headwinds," Ajay Singh, SpiceJet Chairman and Managing Director, was quoted as saying in a statement.

"SpiceJet's dramatic turnaround story has made the world sit up and take notice."

"We will be relentless in reducing our costs and identifying new avenues for revenue generation."

The company said that its profits for the quarter were impacted by demonetisation and higher fuel prices.

"Despite this, margins on EBITDAR (earnings before interest, taxes, depreciation, amortisation, and restructuring), EBITDA (earnings before interest, tax, depreciation and amortisation) and EAT (earnings after taxes) basis were 28 per cent, 14 per cent, 11 per cent respectively," the statement pointed out.

The airline's total income from operations for the quarter under review increased by 12.49 per cent to Rs 1,642.40 crore from Rs 1,459.95 crore earned in the corresponding period of 2015-16.

This is the eighth consecutive profitable quarter for the airline after the challenges faced by the company in December 2014 and the subsequent change in management and control.

On the performnace front, the airline recorded a load factor of 90.7 per cent during the quarter, which was "the highest in the industry".

"SpiceJet also showcased remarkable on-time performance for the quarter by clocking the highest ranking across all metros," the statement elaborated.

"The December quarter saw SpiceJet excelling on all operational parameters, emerging as the country's most punctual airline, while continuing to record the industry highest load factor of over 90 per cent for 21 months in a row."

The company's scrip at the BSE increased by 0.55 per cent or Rs 0.35 per share to Rs 64.35 from its previous close of Rs 64 per equity share.

Currently, the airline operates to 343 average daily flights to 45 destinations, including 39 domestic and six international.

--IANS

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