Asia

SpiceJet posts highest annual profit in it’s history

SpiceJet Boeing 737
Tis Meyer/PlanePics.org

SpiceJet reported a net profit of Rs.73 Crore for Q4 FY16, after taking a one-time expense of Rs.173 Crore towards stabilising and improving the reliability of it’s fleet.

Despite this one-time expense, the net profit is an improvement of 225% over the same quarter last year. SpiceJet reported a net profit of Rs. 407 Crore for FY2016 as against a loss of Rs. 687 Crore for FY 2015, a positive change of Rs. 1094 Crores.

SpiceJet generated an operational revenue of Rs.1,475 Crore in the current quarter, a growth of 86% over same quarter last year. For FY 2016, SpiceJet posted an operational revenue of Rs.5,088 Crore a reduction of3% over FY 2015, while its capacity deployed reduced by 11% over the same period.

On an EBITDA basis, SpiceJet reported a profit of Rs.146 Crore against a profit of Rs.80 Crore in the same quarter last year; and a profit of Rs.640 Crore for FY2016 against a loss of Rs.397 Crore during FY2015.

On an EBITDAR basis, the Company reported a profit of Rs.393 Crore against a profit of Rs.196 Crore in the same quarter last year and a profit of Rs.1,446 Crore for FY2016 against a profit of Rs.467 Crore during FY2015.

For the quarter :

  • Operating revenue per Available Seat Kilometre (ASKM) registered a growth of 21% over the same quarter last year.
  • Expenses (excluding the one-time expense) per ASKM declined 6%. Fuel cost declined by 25%, which is an impact of 8% on total cost. Currency depreciation impacted cost negatively by 3%.

For the fiscal :

  • Operating revenue per ASKM registered a growth of9% over last year.
  • Total expenses (excluding the one-time expense) per ASKM declined 13%.

The increase in unit revenue were a combined result of higher load factors, tighter revenue management and a substantial increase in Ancillary revenue. Unit cost reduction was achieved through contract renegotiation, higher resource productivity, and restructuring of operations, but were adversely impacted by currency depreciation and legacy issues.

This is the fifth consecutive profitable quarter for SpiceJet since the challenges faced in December 2014. The airline has been recording load factors of over 90% consistently over the last 11 months which is the highest in the industry. The operations have stabilised with On Time Performance around 90% and cancellations rates being the lowest in the industry.

“We had inherited a deeply distressed company last year. We are delighted that we have made significant progress both financially and operationally, 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.” said Ajay Singh, Chairman & Managing Director, SpiceJet Limited.

“This turnaround, unparalleled in the history of Indian aviation, would not have been possible without the support of my colleagues at SpiceJet and all our partners. I thank them all,” he added.

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