SpiceJet has doubled its net profit to produce the best first quarter profit in the company’s history.
The Delhi-based low-cost carrier generated a net profit of INR1.49 billion (US$22.2 million) in the first three months of its 2016-17 financial year – an improvement of 104% compared with the INR730 million generated in the same period last year.
This improvement follows a 37% expansion of SpiceJet’s capacity, which in turn drove a 37% increase in revenues, to INR 15.22bn.
The result could have been even better however; SpiceJet said that its profits were impacted by the depreciation of the rupee depreciation, and costs associated with leasing aircraft. But rising passenger traffic and lower fuel costs offset these issues.
“This quarter’s results further demonstrate the impact of efforts that are being put into strengthening SpiceJet,” said Ajay Singh, the airline’s chairman & managing director. “We remain focussed on growing responsibly in a growing but a challenging market.”
This result marks the sixth consecutive profitable quarter for SpiceJet, prior to which it was perilously close to going out of business.