is off to a great start for the Financial Year 2020 as the airline reported a net profit of Rs261.7cr for the quarter ending June 2019 as against a loss of Rs38.1cr for the corresponding quarter last year. The airline company’s total income for Q1 at Rs3,145.3cr.
Operating revenues were at Rs3,002.1cr against Rs2,220.4cr for the corresponding quarter last year. On an EBITDA basis, profit is Rs747.5cr as against Rs100.5cr for the corresponding quarter last year. Operating expenses were at Rs2,883.6cr as against Rs2,227.9cr for the corresponding period last year. Effective April 1, 2019, the airline adopted the new accounting standard IND AS 116 which effectively capitalises operating leases, and as result of this, lease rentals are now reflected as interest and depreciation for the quarter ending June 2019. Additionally, owing to the retrospective treatment of this standard there is a reduction of Rs302.2cr from retained earnings status as of April 1, 2019.
The airline operations remained stressed for a large portion of this quarter due to the continued grounding of its superior B737 MAX aircraft, which limited its ability to take its yields up owing to passenger disruptions and re‐accommodation; while simultaneously increasing its fixed costs on this category of aircraft. The airline, however, spectacularly moved in to salvage this unprecedented situation with additional flights on its existing B737 NG & Q400 fleet by increasing their daily utilisation to 15‐16 hours per day and 13‐14 hours per day respectively, and then inducting 27 Boeing 737 NGs, at a phenomenal pace between April 01, 2019 and June 15, 2019.
Ajay Singh, Chairman and Managing Director, SpiceJet said, “SpiceJet has been on a spectacular growth journey and this quarter, in particular, has been very special for us. We added 32 aircraft to our fleet expanding at a pace unprecedented for a sector plagued by crisis showcasing our robust business model and proven operational capabilities. We are happy that we were able to minimise passenger inconvenience by quickly filling the capacity gap created in India’s aviation sector. The results would have been vastly better but for the painful grounding of the MAX aircraft. We look forward to their swift return to service in the near future that will help SpiceJet increase its margins and provide a superior level of service.”