Wednesday, February 15, 2017

SpiceJet profit crashes 24% on note ban, rising fuel prices

Low-cost carrier SpiceJet recorded a 24 per cent decline in net profit, at Rs 181.1 crore, in the quarter-ended December, from Rs 239.9 crore in the year-ago period.

The airline attributed it to the softening of demand due to demonetisation.

The airline’s total income from operations was Rs 1,642.4 crore, higher than Rs 1,460 crore earned during the same period last year. However, fuel cost increased to Rs 473.7 crore in the quarter against Rs 366.6 crore in the year-ago period.

Rising oil prices have started denting the profitability of Indian carriers.

Jet Airways reported a net profit of Rs 142.4 crore in the quarter ended December — down 70 per cent from Rs 467.1 crore in the year-ago period.

The airline’s CMD Ajay Singh said that minus the impact of demonetisation, the airline performed well in all aspects.
15/02/17 Arindam Majumder/Business Standard