Saturday, August 10, 2019

SpiceJet biggest beneficiary of Jet Airways shutdown, posts highest-ever profit

SpiceJet on Friday reported its highest-ever quarterly profit of Rs 262 crore in the April-June quarter on the back of higher passenger revenues and recognizing lease rents on grounded 737 Max aircraft as other incomes.

The low-cost carrier, which had posted Rs 38-crore loss in Q1FY19 due to provisioning of an arbitration award and higher fuel costs, was the biggest beneficiary of Jet Airways’ shutdown as its domestic passenger count increased 20.2% year-on-year to 5.11 million in the June quarter. The per passenger revenue, or yield, also increased 2.5% y-o-y to Rs 4.2/km in Q1FY20. SpiceJet, the second-largest airline by market share, saw its shares close Friday’s session at Rs 137.95, up 1.47%, on the Bombay Stock Exchange.

While revenue from operations jumped 35% to Rs 3,002 crore, operating margins or the Ebitdar (earnings before interest, tax, depreciation, amortisation and rentals) was up 6.6 bps y-o-y to 22.8%. Its domestic market share went up from 12.3% in Q1FY19 to 14.5% in Q1FY20. Full-service carrier Jet terminated all operations on April 17 due to financial crisis, leading to 15% y-o-y fall in overall domestic capacities. According to the analysts, average domestic fares went up 25-30% y-o-y during Q1FY20.

Last month, IndiGo had announced its best quarterly profit at Rs 1,203 crore for the April-June quarter 2019. The Gurugram-based carrier added 32 aircraft including 27 Boeing 737-800s – earlier operated by Jet – taking its operational fleet count to 94 planes. SpiceJet’s capacities, measured in terms of available seat kilometres, grew 31% y-o-y during Q1FY20 despite 13 of its B737 Max planes grounded since March 2019 over safety concerns.
10/08/19 Financial Express
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