SpiceJet swings to profit in Q1

Budget carrier SpiceJet Ltd, promoted by media czar Kalanithi Maran, has posted a net profit in the first quarter ended June, after a spell of five consecutive quarterly losses, with the carrier reporting a net profit of Rs56.15 crore for the quarter.

The Chennai-based airline sprang back to black led by significant growth in operational and financial parameters, while the carrier also posted an increase in market share to 18.6 per cent for the quarter ended 30 June 2012. SpiceJet had reported a net loss of Rs71.96 crore in the same period of the previous fiscal.

''While we expand our footprint in domestic as well as international sectors, the excessive taxation on ATF in India and the weakening of the Indian rupee against the US dollar are matters of serious concern.

The sharp increase in airport charges and other pass-through levies in various forms are increasing the cost of air travel to our passengers, without bringing any additional revenue to the airlines. The need of the hour is for the Government of India to intervene proactively and launch initiatives urgently to improve the health of Indian civil aviation,'' SpiceJet chief executive Neil Mills said.

Spicejet, posted a 51 per cent rise in revenues to Rs1,406.74 crore during the period under review, compared with Rs930.75 crore reported in the same period a year ago. The carrier's average revenue passenger in the quarter rose 24 per cent and the number of passengers carried rose 26 per cent.

It also recorded an 80.3 per cent increase in seat factor from 78.9 per cent earlier.

The carrier also cautioned that expensive airline turbine fuel (ATF) prices in the country due to local taxes, weak rupee and high airport charges, continued to hurt the sector.

Overall Growth

• 26.1% growth in number of passengers
• 16.7% growth in available seat kilometers
• 43.9% growth in number of departures
• 51% increase in revenue from operations
• 24% increase in passenger yields