SpiceJet returns to profit on better fares, net at Rs 102 crore
This is the second time the carrier has managed to post a quarterly profit during this fiscal, the previous time being in the first quarter of fiscal 2012-13. For the quarter, SpiceJet’s net sales increased 37% to R1,577.79 crore from R1,152.42 crore in the same quarter last year.
“To announce a profit of R102 crore for the third quarter in a current challenging environment is a huge achievement and clearly demonstrates that the strategic changes SpiceJet made in the last two years has created a platform for future success of the company,” Neil Mills, chief executive officer, said in a statement. The airline posted a loss of R164 crore in the second quarter of fiscal 2012-13. But a 29% improvement in average passenger yields to R4,412 from R3,421 helped the airline return to profits. An increase in yields indicates an improvement in airfares.
Apart from the improved airfares, SpiceJet also gained from the grounding of Kingfisher Airlines. The Vijay Mallya-owned airline did not operate a single flight during the quarter, which helped increase SpiceJet’s market share to 19.20% in December 2012 from 16.80% in December 2011.
Better airfares also helped offset a drop in average passenger load factors. During the quarter, SpiceJet had load
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