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Demonetisation woes, fuel costs bear heavy as SpiceJet reports 25 pc dip in net at Rs 181cr

India’s second largest low-cost carrier SpiceJet today reported a 24.5 per cent dip in profit that stood at Rs 181.1 crore for the three months to December, down from Rs 240 crore a year ago.

India TV Business Desk, Mumbai [Updated:14 Feb 2017, 7:24 PM IST]
This was the eighth straight profitable quarter for Spice
This was the eighth straight profitable quarter for Spice JetPhoto:PTI

India’s second largest low-cost carrier SpiceJet today reported a 24.5 per cent dip in profit that stood at Rs 181.1 crore for the three months to December, down from Rs 240 crore a year ago. 

Posting its eighth successive profitable quarter, the company said it could remain profitable despite a softening of demand due to demonetisation and rising fuel prices. 

The airline reported operating revenue of Rs 1,642.4 crore as its seat load factor remained robust at 90.7 per cent, the highest in the industry. 

"Profits for the quarter were impacted by demonetisation and higher fuel prices. Despite this, margins on EBITDAR, EBITDA and EAT basis are higher by 28, 14 and 11 per cent, respectively, the airline said. 

"We have reported our eighth successive profitable quarter despite headwinds. Our historic aircraft order signifies the end of the turnaround phase and marks the beginning of a growth story. 

"This order will help build an even stronger and more profitable airline. We will be relentless in reducing our costs and identifying new avenues for revenue generation," said Ajay Singh, Chairman and Managing Director. 

The quarter saw the airline doing well on all operational parameters emerging as the country's most punctual airline while continuing to record the industry highest load factor of over 90 per cent for 21 months in a row. 

This is the eighth consecutive profitable quarter for the budget airline since its turnaround after the December 2014 crisis and management change. 

SpiceJet operates 343 daily flights to 45 destinations - 39 domestic and six international - using a fleet of 32 Boeing 737NGs and 17 Bombardier Q-400s.

(With PTI inputs)