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
"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.