High Plane Occupancy Helps SpiceJet Cruise Through The Second Quarter
SpiceJet Ltd.’s net profit more than doubled in the July to September quarter of financial year 2016-17, beating street estimates. The company saw its seventh consecutive profitable quarter after nearly shutting down in 2014.
Net profit to Rs 58.9 crore from Rs 29 crore in the same quarter last year, according to the company’s financial results posted on the exchanges. Analysts tracked by Bloomberg had pegged the bottom-line figure to be Rs 20.5 crore. On an earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs basis, the company reported a profit of Rs 333 crore.
Operating revenue jumped 34.6 percent to Rs 1,400.4 crore, also beating the estimates of Rs 1,389.2 crore.
This was the weakest quarter of the year and despite the intense competition in the market, SpiceJet has performed exceptionally well. We continue to focus on responsible and profitable growth. We have resolved practically all our legacy issues and the stage is set for building up our cash reserves and finalising our long term fleet expansion plans.Ajay Singh, Chairman And Managing Director, SpiceJet
Total cost declined 10 percent over the same quarter last year and average unit fares improved 5 percent despite competitive pressures.
The airline reported passenger load factor or occupancy per plane of 92.3 percent. SpiceJet has recorded the highest passenger load factor in the industry for 19 months in a row, according to its media statement.
Market Share Battle
SpiceJet’s domestic market share in the first six months of the financial year increased to 13 percent compared to 12 percent in the same period last year.