Low-cost airline SpiceJet, which posted a 22% jump in latest quarter’s net profit, hopes to improve its performance further in the current financial year 2019-20, helped by the prime slots at key airports it got after Jet Airways got grounded. SpiceJet MD Ajay Singh acknowledged the acquisition of plum spots at airports, without mentioning Jet Airways. Riding high on other factors as well, which include favourable operating environment, likely return of Boeing’s B737 MAX in July and its recent fleet expansion spree, the company, along with rival IndiGo, will make the most of Jet Airways grounding.

SpiceJet has received the maximum number of slots which were up for grabs after Jet Airways temporarily shut down its operations in March 2019. Out of the total number of 766 vacated slots, DGCA, Airport Authority of India and private airport operators had allocated 479 slots. Out of these, SpiceJet got 130, mostly in Mumbai. Other airlines have also received the Jet slots but SpiceJet has emerged as the biggest beneficiary, followed by IndiGo, which got 127 slots. The carriers have received these slots for a temporary period of three months.

The budget carrier has also expanded its operations with an increase in its fleet. SpiceJet has added 106 new flight since April 2019 and also revealed its ambitious international plan. “As part of its international expansion strategy, SpiceJet has signed a Memorandum of Understanding for interlining and codeshare arrangement with Emirates, one of the world’s largest airlines,” it said in a statement.

Key takeaways from Q4 results

Ajay Singh-founded budget carrier has reported a 22% jump in profit to Rs 56.3 crore while the same was at Rs 46 crore in the corresponding period of the last fiscal. The carrier’s revenue increased by 25% the quarter is not a peak travel season. With an 11% hike in fares, SpiceJet’s “profits grew despite the grounding of MAX aircraft”, the carrier said. In the yearly numbers, SpiceJet has incurred a net loss of Rs 316.1 crore in FY19. It had also lost Rs 427.5 crore in the first two quarters.

Attributing the previous losses to a steep increase in fuel costs and sudden depreciation of the Rupee, SpiceJet Chairman Ajay Singh said that despite the losses and unprecedented challenges, SpiceJet has posted a strong recovery in the last two quarters.