Low cost carrier (LCC) SpiceJet on Friday reported a standalone net profit of Rs 261.7 crore for the June quarter of FY20 Q1FY20), as against a loss of Rs 37.9 crore in the June quarter of FY19. The airline had reported a PAT of Rs 56.3 crore in the March quarter of FY19 (Q4FY19). This was the airline's biggest ever quarterly profit, as it flew more passengers and raised fares in the wake of the collapse of Jet Airways. The profit was also boosted by other income of Rs 143.2 crore in Q1 (against Rs 32.89 crore) including Rs 114.1 crore towards reimbursements from Boeing against revenue loss incurred due to grounded Boeing 737 MAX aircraft.
"On the grounded Boeing 737 MAX aircraft, the company continues to incur various costs with respect to these aircraft and during this quarter ended June 2019 on account of its inability to undertake revenue operations, the company has recognised Rs 114.1 crore towards aircraft and supplemental lease rentals as other income. This is a part recognition of the total reimbursements, on which the company is working with the aircraft manufacturer, towards various ascertained costs and losses incurred by the company on this aircraft," the company explained.
The profit beat analysts’ expectations. Edelweiss Securities, for instance, had pegged the profit at Rs 154 crore.
The budget carrier’s total income came in at Rs 3,145.3 crore for the quarter ending June 2019. The same was Rs 2,253.3 crore in the corresponding quarter of the previous fiscal while it was Rs 2,571.8 crore in Q4FY19. CLICK HERE TO READ WHAT ANALYSTS HAD EXPECTED
“SpiceJet has been on a spectacular growth journey and this quarter, in particular, has been very special for us.
We added 32 aircraft to our fleet expanding at a pace unprecedented for a sector plagued by crisis showcasing our robust business model and proven operational capabilities.,” Ajay Singh, chairman, SpiceJet said in a statement. He, however, said that the operations remained “stressed” for much of the quarter due to the grounding, causing disruption to passengers’ travel plans and an increase in fixed costs related to the narrow-body aircraft. The second biggest airline, by market share, had estimated that the grounded Boeing 737 Max planes would resume flying by July or August, but there was still uncertainty around the specific timing. It added that it would induct 5-10 Boeing 737 NG planes and three Bombardier Q400 aircraft in October.
According to the data provided by the airline, it added 32 aircraft during the recently concluded quarter, taking its total aircraft fleet to 107 as on June 30.
“The airline became the biggest regional player in the country with 51 daily UDAN flights and launch of 18 UDAN flights during the quarter,” the airline said in a statement.
Operating revenues were at Rs 3,002.1 crore against Rs. 2,220.4 crore for the corresponding quarter last year, up 35.2 per cent YoY. The airline logged an EBITDA of Rs 620.8 crore, up 664 per cent YoY, from Rs 81.3 crore clocked in Q1FY19.
During the April-June quarter, the airline’s capacity (in terms of Seat Kilometers) grew by 31 per cent, while passenger fees increased by 11 per cent. The LCC also registered industry’s highest domestic load factor of 93.8 per cent, it said in its statement.
On a consolidated basis, the net profit stood at Rs 262.89 crore, up 262.6 per cent sequentially, from a profit of Rs 72.5 crore logged in quarter ended March, 2019. The revenue from operations came in at Rs 2,922.5 crore, up from Rs 2,185.47 crore reported in June quarter of the last fiscal.
According to data provided by Directorate General of Civil Aviation (DGCA), the LCC is the second largest airline in India, by market share. The market share grew from 13.6 per cent to 14.5 per cent between quarter ending March, 2019 and quarter ending June, 2019. In the first six months of CY19, the airline has a market share of 14 per cent, coming second to IndiGo.Soon after the result, the stock rose 5.7 per cent to Rs 143.45 apiece, as against 0.9 per cent rise in the S&P BSE Sensex.