Tuesday, February 15, 2022

SpiceJet reports surprise profit of Rs 42.45 crore in December quarter

Low-cost airline SpiceJet Ltd on February 15 reported a surprise profit for the December quarter after seven consecutive quarterly losses, helped by increase in fliers and higher yields. The carrier reported a consolidated net profit of Rs 42.45 crore in the December quarter against a loss of Rs 66.78 crore a year ago.

Revenue from operations rose 34.78 percent to Rs 2,204.68 crore for the quarter as against Rs 1,635.79 crore in the last year, as SpiceJet added more destinations and newer aircraft to its fleet.

SpiceJet's logistics platform SpiceXpress continued on its growth trajectory with its revenue surging 17 percent year on year to Rs 584 crore in the quarter against Rs 498 crore a year ago.

"I am happy that SpiceJet reported a profit in Q3 FY2022 driven by excellent logistics operations, rebound in passenger traffic and various accommodations from aircraft manufacturers and lessors. The passenger industry witnessed the much needed turnaround in the third quarter as Covid cases ebbed in the first half of the quarter, travel picked up significantly and there was finally hope that the worst was behind us,” said Ajay Singh, Chairman and Managing Director of SpiceJet.

"However, that changed by the second half of December as Omicron halted that recovery. Our performance would have been much better but was impacted by the unexpected delay in the return to service of the 737 MAX, rising fuel costs and certain exceptional adjustments. I am happy to say that there are renewed signs of recovery in the passenger segment and the logistics segment continues to remain strong," Singh added.

15/02/22 Moneycontrol

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