No-frill carrier SpiceJet on Monday reported a 78% year-on year jump in third-quarter net profit to Rs 105.3 crore on the back of yields and capacity growth.
The company in a statement said the profit growth came in a seasonally weak quarter against capacity growth of 22% during this period.
The passenger yields measured in terms of revenue per available seat kilometre grew 7% year on year, while average load factor was at 93.1%.
Ajay Singh, chairman and managing director, SpiceJet, said, "Even with 11 successive profitable quarters, path-breaking initiatives, record aircraft orders and exploring new growth avenues through UDAN, I can say that we have just begun."
On the ongoing litigation between the present and erstwhile promoters, Kalanithi Marans and M/s KAL Airways, SpiceJet said the matter is presently under arbitration.
SpiceJet mentioned that the company at present has total equity of Rs 332.6 crore, including accumulated losses of Rs 192.50 crore. Of it, the company's total liabilities, including Rs 579 crore for litigation with former promoters, exceed its total assets.
SpiceJet also confirmed its latest order for up to 50 Bombardier Q400 planes that was announced in the Paris Airshow, making it the largest single order ever for the aircraft type. Upon delivery, the airline may become the first in the world to operate a 90-seat turboprop.
SpiceJet, which made a turnaround from near grounding around three years ago, has also signed a memorandum of understanding with Japan's Setouchi Holdings for starting amphibian plane services in India. The airline management claims the project will become sustainable only if it could be scaled up to over 100 planes. The list price of each aircraft stands around $4 million, or $400 million for a fleet of 100 planes. The company is looking to seek low interest loans from Japan, similar to the one provided for the bullet train planned between Mumbai and Ahmedabad.
FLYING HIGH
- Development comes on the back of yields and capacity growth
- SpiceJet is looking to seek low interest loans from Japan
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On the ongoing litigation between the present and erstwhile promoters, Kalanithi Marans and M/s KAL Airways, SpiceJet said the matter is presently under arbitration.
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