The FINANCIAL -- SpiceJet reported a quarterly profit of INR 46.1 Crore for the traditionally weak quarter ended March 31st, 2018, making it the 13th successive profitable quarter for the airline.
Net profit for FY 2018 stood at INR 566.7 crore, making this the third successive year of profitable growth. For the previous fiscal 2017, these were INR 41.6 Crore and INR 430.7 Crore respectively.
Operating revenues were at INR 2,029.3 crore for the reported quarter and INR 7,795.1 crore for the fiscal 2018. On an EBITDA basis, profit is INR 131 crore for the reported quarter and INR 890.1 crore for the fiscal 2018. On an EBITDAR basis, the profit is INR 429 crore for the reported quarter and INR 1927 crore for the fiscal 2018, according to SpiceJet.
“Despite rising fuel prices, SpiceJet continues to record profits and has recorded the highest annual profit in its history. With the fuel efficient B737 MAX joining our fleet in the coming months we will continue to expand at home and abroad and strive to improve profitability and operating performance,” said Ajay Singh – CMD, SpiceJet.
“SpiceJet, this month, celebrates 13 years of an incredible journey. From scripting one of the biggest aviation turnarounds to three successive profitable years, record aircraft orders, industry’s highest load factor, high on-time performance, the airline has indeed come a long way and emerged as the country’s largest regional operator. I am very pleased with the exceptional performance of my team,” he said.
The airline’s record of profitable growth comes on the back of its continued focus on nurturing a healthy growth rate in its passenger traffic by adding capacitates on its existing routes while identifying new destinations with pent-up demand across the country. The Company has demonstrated a strong revenue performance backed by an increase in yield and record load factor and as a result could absorb the significant rise in fuel costs.
In Q4, there was an increase of 12.7 % in crude oil prices that impacted the bottom line by approximately INR 81.4 crore. The Company registered an 8% increase in yield which helped in maintaining operational profits.
In terms of operational parameters, SpiceJet had the best passenger load factor amongst all airlines in the country during the quarter and the year. The average domestic load factor for the quarter was 95.4 %, and for the year 94.7%. For three years in a row, SpiceJet has flown with the highest load factors in the Indian aviation market and for 35 months in a row the loads have been in excess of 90%, a feat unparalleled globally.
The quarter also witnessed the airline ink a $12.5 billion agreement with CFM International for the purchase of LEAP-1B engines to power its 155 Boeing 737 MAX fleet, along with spare engines. This will enable a significant reduction in our engine maintenance costs for our new Max fleet.
During 2017-18 fiscal, the airline has been at the forefront driving the national agenda of UDAN, on-boarding five destinations across the country onto the national aviation map including Kandla, Porbandar, Puducherry, Jaisalmer and Adampur. During the current quarter, SpiceJet will start operations on some other UDAN sectors like Kanpur and Hubli.
SpiceJet has been awarded 20 new sectors under the second round of UDAN. Some of the exclusive routes awarded to SpiceJet include Delhi-Darbhanga, Mumbai-Darbhanga, Delhi-Pakyong, Chennai-Tanjore, Delhi-Kishangarh among others.
Reiterating its commitment towards direct connectivity, SpiceJet announced a host of new non-stop flights during the year giving a fresh impetus to leisure and business travel. Internationally the airline launched a daily direct flight on the Ahmedabad-Bangkok sector, besides on-boarding domestic destinations like Leh, Dibrugarh among others.
Key business updates
This upcoming fiscal 2019 will witness an induction of 19 737 MAX aircraft which will reduce the costs by 8-9% on this aircraft class as compared to the previous generation; and 8 new generation Q400s with additional seating capacity which will improve the overall operating economics of this aircraft by 15-18%.