SpiceJet, the second-largest airline by market share, saw its shares close Friday’s session at Rs 137.95, up 1.47%, on the Bombay Stock Exchange.
SpiceJet on Friday reported its highest-ever quarterly profit of Rs 262 crore in the April-June quarter on the back of higher passenger revenues and recognizing lease rents on grounded 737 Max aircraft as other incomes.
The low-cost carrier, which had posted Rs 38-crore loss in Q1FY19 due to provisioning of an arbitration award and higher fuel costs, was the biggest beneficiary of Jet Airways’ shutdown as its domestic passenger count increased 20.2% year-on-year to 5.11 million in the June quarter. The per passenger revenue, or yield, also increased 2.5% y-o-y to Rs 4.2/km in Q1FY20. SpiceJet, the second-largest airline by market share, saw its shares close Friday’s session at Rs 137.95, up 1.47%, on the Bombay Stock Exchange.
While revenue from operations jumped 35% to Rs 3,002 crore, operating margins or the Ebitdar (earnings before interest, tax, depreciation, amortisation and rentals) was up 6.6 bps y-o-y to 22.8%. Its domestic market share went up from 12.3% in Q1FY19 to 14.5% in Q1FY20. Full-service carrier Jet terminated all operations on April 17 due to financial crisis, leading to 15% y-o-y fall in overall domestic capacities. According to the analysts, average domestic fares went up 25-30% y-o-y during Q1FY20.
Last month, IndiGo had announced its best quarterly profit at Rs 1,203 crore for the April-June quarter 2019. The Gurugram-based carrier added 32 aircraft including 27 Boeing 737-800s – earlier operated by Jet – taking its operational fleet count to 94 planes. SpiceJet’s capacities, measured in terms of available seat kilometres, grew 31% y-o-y during Q1FY20 despite 13 of its B737 Max planes grounded since March 2019 over safety concerns.
The airline said it has obtained and assessed legal advice with regard to the reimbursements from Boeing and recognized lease rentals for the June quarter other income thereby lifting the net profits.
While SpiceJet got 48 domestic and international departure slots in Mumbai, it bagged 15 such slots in Delhi. Starting April 1, the airline has introduced 130 flights connecting different cities to Delhi and Mumbai, and expanded its international network from the key metros to destinations like Jeddah, Bangkok, Colombo, Hong Kong, Dubai and Dhaka.
The prices of aviation turbine fuel and the value of rupee remained stable during the quarter which helped the airline contain its costs. The carrier is planning to induct 5-10 Boeing 737 NG aircraft and 3 Q400 aircraft by October 2019.