Wednesday, May 29, 2019

SpiceJet reports Rs 56.3 crore profit despite Max grounding

After Indigo it is SpiceJet which reported increase in profitability. SpiceJet reported a 22% jump in net profit for the March quarter despite grounding of Boeing MAX aircraft.

The airline reported a profit of 56.3 crore for the quarter ended March 31st, 2019 as against 46.2 crore in the same period last year.

"SpiceJet's profit for the fourth quarter though not in the same league as Indigo is commendable considering that 12 B737Max were grounded during the period, affecting capacity deployment. Some of the gains have to be attributed to Jet Airways gradually tapering its fleet starting February resulting in increased passenger carriage. Higher yields from Jet stoppage resulting in higher fares helped in increasing profitability," said Jitendra Bhargava, former executive director, Air India.

Owing to space created in absence of Jet, SpiceJet's capacity was up by 21% while average fare rose 11%.

However, these profits do not include any form of reimbursements or compensation on the grounded aircraft.

SpiceJet is working with the manufacturer, the airline said in a statement.
29/05/19 Pankaj Upadhyay/India Today
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