SpiceJet Ltd on Friday reported its highest ever quarterly profit in the June quarter. The profits were driven by other income, including reimbursements from Boeing Co. for the revenue loss due to the grounding of 737 Max aircraft. Higher passenger traffic following the grounding of Jet Airways, and expansion of its fleet size to cater to more routes and passengers contributed to its yield.
Total costs rose by to 2,884 crore rupees in Q1, with aircraft fuel costs rising to 1,029 crore rupees during the period.
Stand-alone revenue rose 39.59 percent to 3,145.26 crore rupees during the quarter, beating the estimates of 2,991.70 crore rupees by Bloomberg poll.
Ajay Singh, SpiceJet’s chairman and managing director, said that they added 32 aircraft to their fleet expanding at a pace unprecedented for a sector that is plagued by crisis. It showcases their robust business model and proven operational capabilities.
With the current developments and uncertainty around the exact month of resumption, SpiceJet plans to cater to the winter season by inducting 5-10 Boeing 737 NG aircraft and 3 Q400 aircraft in October 2019.
Aircraft and supplemental lease rentals of 114.1 crore rupees incurred in the quarter ended 30 June, 2019, relating to Boeing 737 Max aircraft have been recognized as other income during the current quarter.
Tags: SpiceJet
