SpiceJet announces promising Q3 FY09 results

For the fiscal quarter ending December 2008, SpiceJet posted the following results, compared with the same quarter last year:

• Net profit of Rs. 8 million, excluding an extraordinary charge
• 16 % growth in Operating Revenue from Rs. 408 crore to Rs. 472 crore 
• 24 % increase in Average fare realization from Rs. 3177 to Rs. 3924 
• 9 % increase in Revenue per flight from Rs. 449 K to Rs. 490 K 
• 11% increase in Revenue per Available Seat Kilometre from Rs. 2.19 to Rs. 2.42

SpiceJet declares a net profit of Rs. 8 million largely due to a decline in ATF cost. Including the one time extraordinary charge of Rs 187 million, to settle a long pending dispute with an erstwhile investor, the net loss is posted at Rs 180 million. This extraordinary charge was estimated as a potential risk of up to Rs. 317 million, till the Q2, FY09 earning release.

While announcing the results, Sanjay Aggarwal, Chief Executive Officer said, "We are very proud of what SpiceJet team has accomplished in a quarter where the passenger traffic saw a significant decline of 12% year-over-year."

The company achieved a 24% increase in Average Fare Realization in the current quarter compared to same quarter last year. However, the growth in Revenue Per Flight was only 9%, due to a 12% decline in the passenger traffic for the period.

Commenting on the future, Sanjay Aggarwal said, "The industry saw a decrease in demand despite lowering of fares by all airlines in India. However, we are optimistic that we will see an upward trend in passenger demand starting this summer. Fortunately, the fuel prices have stayed low to offset the lower demand. SpiceJet is one of the lowest cost operations in the industry and we are constantly looking at managing our costs even better.

Our efforts will remain focused on using innovative ways to further reduce cost and delivering a world-class service experience for our customers. We will continue to bring in motivated team members into the organization and work towards creating a winning culture at the work place."

SpiceJet is also pleased to announce the induction of Wilbur L. Ross Jr, Chairman & CEO, of WL Ross & Co. LLC and Ranjeet Nabha, Managing Director & CEO, of WL Ross India, on the Board

About SpiceJet Ltd.:
SpiceJet is India's 'best low cost airline' *, delivering the lowest air fares with the highest consumer value. We operate 115 flights daily to 18 cities viz. Ahmedabad, Bangalore, Bagdogra, Chennai, Coimbatore, Delhi, Guwahati, Goa, Hyderabad, Jammu, Jaipur, Kochi, Kolkata, Mumbai, Pune, Srinagar, Varanasi and Visakhapatnam. Our on-time performance is amongst the best in India, at 82%, coupled with a Technical Dispatch Reliability of 99.6%, making us an airline with least cancellations. SpiceJet's new generation fleet of 19 Boeing 737-800 / 737-900ER aircraft are backed by cutting edge technology and infrastructure to ensure the highest standards in safety and operating efficiency.  

SpiceJet is the winner of

• 2008 Frost & Sullivan Indian Commercial Aviation Emerging Company of the Year Award (Nov 2008) London 
• Smart Travel Asia's Top 10 Best Budget Airlines in Asia (Sept 2008) Hong Kong 
• Outlook Traveler's Best Low Cost Airline (Feb 2008) India 
• TAFI – Abacus's * Best Low Cost Airline (Sept 2007) Malaysia