SpiceJet Q2 net more than doubles to Rs 59 cr

The improved numbers were primarily driven by an increase in operating margins to 24% while cost declined 10%

Budget carrier SpiceJet today reported seventh straight quarterly profit at Rs 59 crore for July-September -- its highest ever.

The 103 per cent jump in net profit in its decade-old history was primarily driven by an increase in operating margins to 24 per cent while cost declined 10 per cent.

"This is (generally) the weakest quarter of the year and despite intense competition in the market, we have performed exceptionally well. We continue to focus on responsible and profitable growth," said Chairman and Managing Director Ajay Singh in a statement.

The airline's revenue rose 35 per cent to Rs 1,400 crore as its capacity grew 38 per cent during the period.

Its total cost declined 10 per cent over the same quarter last year while average unit fare improved by 5 per cent despite competitive pressure.

"This is the seventh consecutive profitable quarter for us after the challenges faced in December 2014 and the change in management and control," the airline said.

The airline recorded a passenger load factor of 92.3 per cent in the reporting quarter, the highest in the industry. In fact, it has moving at the fastest clip for the past 19 months in a row and the load factor has been in excess of 90 per cent 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," Singh said.

Spicejet operates 342 daily flights connecting 45 destinations, of which 39 are domestic deploying 31 Boeing 737NGs and 17 Bombardier Q-400s.

The stock closed at Rs 65.35, up 1.48 per cent, on BSE today.