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After seven quarters of loss, SpiceJet swung to net profit of Rs 22.5 crore in the fourth quarter of FY15. This was aided by higher other income and net gain from an insurance claim.
SpiceJet underwent a change in management in January and the period also saw the downsizing of its fleet and the curtailment of its schedule. Revenue fell 50 per cent to Rs 786 crore in the fourth quarter.
Total expenses declined 53 per cent to Rs 888 crore due to lower costs on fuel, lease rentals, and airport charges, among others. Fuel expense was 66 per cent lower as a result of a drop in aviation turbine fuel prices and reduction in schedule.
Loss from operations before other income and interest costs declined to Rs 102 crore from Rs 334 crore a year ago.
SpiceJet said the results indicated that its recovery is on track and said it achieved positive Ebitda (earnings before interest, taxes, depreciation, and amortisation) of Rs 80 crore in the current quarter as against an Ebitda loss of Rs 235 crore a year ago.
“These results indicate a recovery is in progress, and is the first tangible evidence of the revival”, said SpiceJet chairman Ajay Singh.
The airline said it has focused on restoring operational reliability and winning back customer confidence to boost revenues, while negotiating settlements and re-negotiating several major contracts to bring down costs. The airline ended the quarter with a load factor of 81%, it said in a statement.
Other income was up 59 percent to Rs 91 crore and the airline also received Rs 61 crore in insurance claim. SpiceJet said the gains from insurance were negated by one off expense of Rs 66 crore for redelivery of planes.
