SpiceJet Ltd said on Thursday it made 225.2 million rupees ($3.53 million) in the three months to the end of March.
Low-cost carrier SpiceJet Ltd said on Thursday it made 225.2 million rupees ($3.53 million) in the three months to the end of March, returning to profitability after seven quarters of losses.
The country’s fourth-largest airline by market share, which almost collapsed in December before being bailed out, reported a 3.22 billion rupees net loss for the same period last year.
“These results indicate that a recovery is in progress, and is the first tangible evidence of the ongoing revival,” Chairman Ajay Singh, who led a rescue package for the airline last year when it had run out of money, said in a statement.
The airline said it had focused on negotiating settlements and restructuring contracts to cut costs. SpiceJet has also reduced the size of its fleet, lowering costs further.
SpiceJet said earlier this month that it wants to raise more funding and start to rebuild the size of the fleet as it tries to win back customers. Its market share slumped to 9.4 percent in the January-March quarter, government data shows, down from 18.1 percent a year earlier.
“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,” Ajay Singh added. “Our results show the resilience of the SpiceJet brand, and the unwavering faith, passion, and commitment of each and every one of our employees. I am delighted to see the airline that I helped create this month 10 years ago starting to get back on its feet in this manner”, he added.
1. SpiceJet reports Rs. 22.5 crore net profit, a turnaround from the net loss of Rs 321.5cr for the same quarter last year
2. Returns to profitability after 7 quarters
3. First profitable Q4 after 2010
4. On an EBITDA basis, SpiceJet reported positive Rs 80cr, against negative Rs 235cr the previous year.
5. Company changed hands during the quarter and is now under its original Founder-Director and now Promoter, Chairman, and Managing Director Ajay Singh
6. Spicejet ends the quarter with a load factor of 81%, which is a historic high for low season
“I am thrilled that with the return and backing of the founder of the airline Mr Ajay Singh, SpiceJet has is 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”, said Sanjiv Kapoor, Chief Operating Officer, SpiceJet. “I want to thank all of our employees, lessors and other business partners, the government, and other stakeholders who stood by us to see us through to this transformational turning point”, he added.
($1 = 63.8100 Indian rupees)