SpiceJet completes turnaround with highest ever quarterly profit
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SpiceJet’s recovery from its financial difficulties appears to be complete, with the Indian low-cost carrier having posted its highest-ever quarterly net profit.
The Delhi-based airline was on the brink in late 2014, when financial problems forced it to ground multiple aircraft and slash its route network. But following a major turnaround effort in 2015, SpiceJet recorded a net profit of INR2.38 billion (US$35 million) for the third quarter of its financial year (ending 31 December 2015).
This marks an improvement of more than INR5bn compared to the net loss of INR2.75bn the airline suffered in the same period in the previous financial year.
The strong result was driven by an 11% year-on-year increase in revenue, which totalled INR14.60bn for the quarter. In terms of EBITDA (earnings before tax and other items), SpiceJet again saw an increase of almost INR5bn to INR2.92bn.
“SpiceJet was back to near normal operations this quarter. While the margins remain slightly depressed due to wet lease operations, the Chennai floods and exchange losses, we are happy with the progress we have made so far,” said Ajay Singh, the airline’s chairman & managing director. “The company will continue to work on reducing legacy cost and increasing efficiency,” he added.
This is the fourth consecutive profitable quarter for SpiceJet since its turnaround began in January 2015. The airline also recorded a load factor of 91.6% for the quarter, the highest of any Indian carrier.
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