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SpiceJet sees improving outlook despite profit plunge


(Reuters) - Higher passenger yields for Indian low-cost carrier in its third quarter only partially offset higher crude and foreign-exchange losses that resulted in a sharp drop in profit.

Though profit plunged by 77 percent after a 34 percent jump in and 11 percent depreciation of the rupee against the dollar sent, shares in the company closed 2.4 percent up on the 8 percent increase in passenger yields - a measure of fares and distance flown - and hopes of more stable crude prices.

The airline's standalone net profit, which excludes results of its Merchandise and Technic businesses, fell to 550.7 million rupees ($7.74 million) for the last three months of 2018 from 2.4 billion rupees a year earlier, the said.

SpiceJet, India's fourth-largest by market share, and rival are seeing signs of recovery in an intensely competitive market in which profitability has been squeezed further by an intense price war. (Graphic: India's biggest by market share

IndiGo, owned by InterGlobe Aviation, last month reported a 3.7 percent rise in passenger yield for the same quarter.

With easing and SpiceJet adding the fuel-efficient 737 MAX aircraft to its fleet, "the outlook looks stronger than it has over the past year", said in the statement.

SpiceJet's average fares rose 25 percent from the previous quarter despite a 16 percent rise in capacity in terms of seat kilometers.

($1 = 71.1625 Indian rupees)

(Reporting by Tanvi Mehta in Bengaluru and Aditi Shah in New Delhi; Editing by David Goodman)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, February 11 2019. 17:04 IST