SpiceJet’s net profit more than tripled to Rs 73.19 crore in the three months to March as higher income from operations helped the no-frills carrier remain profitable for the fifth straight quarter. The carrier had a net profit of Rs 22.52 crore in the year-ago period. In a release, SpiceJet said net profit stood at Rs 73.19 crore after taking a “one-time expense of Rs 173 crore towards stabilising and improving the reliability of its fleet”.
SpiceJet Chairman and Managing Director Ajay Singh said that by taking the one-time expense, the airline has now “accounted for all legacy issues and are ready to start on a clean slate with even greater confidence”.
During the latest March quarter, the airline’s total income from operations climbed to Rs 1,474.99 crore from Rs Rs 790.91 crore in the same period a year ago. “This is the fifth consecutive quarter for SpiceJet since the challenges faced 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,” the release said.
Operations have stabilised with on-time performance at around 90 per cent and cancellations rates being the lowest in the industry, it added. In the 2016 March quarter, the carrier’s total expenses went up to Rs 1,460.39 crore from Rs 888.83 crore in the year-ago period.
For the financial year 2015-16, SpiceJet saw its net profit surging to Rs 407.19 crore against a net loss of Rs 687.05 crore in 2014-15 fiscal. “We had inherited a deeply stressed company last year. We are delighted that we have made significant progress both financially and operationally, and have significantly strengthened our balance sheet,” Singh said.