Low-cost carrier SpiceJet, which recently saw its ownership change, reported a profit of Rs 22.5 crore for the March quarter — its first profit in seven quarters — benefiting from a net gain on an insurance claim by the airline, contract re-negotiations with vendors and cheaper jet fuel.

The carrier, currently led by co-founder Ajay Singh, had posted a loss of Rs 321.5 crore during the same quarter previous year.

The company said in a statement on Thursday that it had received approvals from insurers for one of its Bombardier Q400 aircraft, which sustained extensive damage during operations, for an insurance claim of Rs 161.72 crore (of which Rs 83.50 crore is payable to the relevant aircraft lessor/relating to the outstanding liabilities) that has been recognised as an extraordinary item, during the quarter.

Revenues, however, fell by more than a half to Rs 786 core compared to Rs 1,573 crore during the same quarter previous year. The fall in revenues can be attributed to the cutting down of fleet and routes significantly during the past one year and especially in December 2014, when the company was forced to cancel flights after being unable to pay vendors, oil marketing companies and even its own staff.

The airline, which had as many as 57 aircraft in its fleet (including leased) at the end of Fy14,   saw fleet size fall to 32 aircraft in March 2015. This included 17 Boeing and 15 Bombardier aircraft.

However, the change of ownership — from former promoter Kalanithi Maran to Ajay Singh — has brought about some stability. The airline is slated to increase its fleet size by leasing more aircraft in coming months.

On an annual basis, the Gurgaon-headquartered airline saw its losses narrow to Rs 687 crore for fiscal 2014-15, down from the Rs 1,003- crore loss it reported last year.

Revenues however shrank to Rs 5,202 crore during the recently concluded fiscal from Rs 6,304 crore previous year.
SpiceJet said in a statement that it ended the March quarter with a load factor of 81%, a historic high for the lean season.

“These results indicate that recovery is in progress, and is the first tangible evidence of the ongoing revival,” said Ajay Singh, SpiceJet chairman. “We are confident that we will build a world-class airline and this is the first step. We still have a lot of work to do,” he said.

SpiceJet’s chief operating officer Sanjiv Kapoor added the airline was clearly turning the corner. “I firmly believe this is the start of what will be noted as a historic airline turnaround not just in India, but in the world.” The airline also added in the statement that it has appointed Kiran Koteshwar as its chief financial officer.

Comeback flight
* The company said in a statement on Thursday that it had received approvals from insurers for one of its Bombardier Q400 aircraft, which sustained extensive damage during operations, for an insurance claim of R161.72 crore
* Revenues, however, fell by more than a half to R786 core compared to R1,573 crore during the same quarter previous year
* SpiceJet’s chief operating officer Sanjiv Kapoor added the airline was clearly turning the corner. “I firmly believe this is the start of what will be noted as a historic airline turnaround not just in India, but in the world.”
* The airline also added in the statement that it has appointed Kiran Koteshwar as its chief financial officer