SpiceJet flies out of the red; posts net profit of Rs 26 crore



SpiceJet flies out of the red; posts net profit of Rs 26 crore Mumbai/New Delhi: A shift in passenger traffic towards economy airlines and improved market share helped no-frills airline SpiceJet to emerge from losses and post a net profit of Rs 26.34 crore during the quarter ended June 30, 2009.

SpiceJet on Tuesday recorded a net profit of Rs 26.34 crore in the first quarter, while it had a net loss of Rs 129.22 crore in the same quarter of 2008.

The airline's total income stood at Rs 534.41 crore during the latest quarter as against Rs 483.40 crore in the corresponding period last fiscal.

The company said although Q1 remained weak for domestic aviation -- with a decline of five per cent in passenger traffic over Q1, 2008 -- there were signs of recovery in June, which saw a traffic increase of 5.5 per cent over the same month previous year. This happened after a decline for 12 consecutive months.

"We had a great quarter given the challenges the industry continues to face. We saw an increased acceptance of our service by the consumers. This helped in absorbing the additional 10 per cent capacity that we deployed last year," SpiceJet Chief Executive Officer Sanjay Aggarwal said.

He added that the company's market share improved to 12.4 percent during Q1 from 10.4 per cent in April-June, 2008.

"We expect the yields to remain under pressure during the quarter July-September, which are traditionally weak months for travel," Aggarwal said.

Bureau Report