SpiceJet Ltd, India’s fourth-largest airline by market share, said its fourth-quarter net profit more than tripled on lower fuel prices and as it flew more passengers.
SpiceJet’s net profit jumped to Rs 73 crore for the three months to March 31, from Rs 22.5 crore a year earlier, even though the carrier took a one-time expense of Rs 173 crore in the March quarter towards “stabilising and improving the reliability of its fleet”.
SpiceJet’s operational revenue rose 86 per cent year-on-year to Rs1,475 crore in the March quarter.
This is the fifth consecutive profitable quarter for SpiceJet, which was on the brink of a collapse in December 2014. The airline has been recording load factors of over 90 per cent consistently over the last 11 months which is the highest in the industry.
SpiceJet Chairman & Managing Director Ajay Singh said the company’s turnaround is “unparalleled in the history of Indian aviation”.
“We had inherited a deeply distressed company last year. We are delighted that we have made significant progress both financially and operationally, and have significantly strengthened our balance sheet. By taking the one-time expense, we have now accounted for all legacy issues and are ready to start on a clean slate with even greater confidence,” he added.
SpiceJet shares closed 4.6 per cent lower at Rs 79.55 today. The stock underperformed the broader Sensex, which closed 1.2 per cent lower.