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SpiceJet reports Rs 73.2 cr profit in Dec quarter

Feb 14, 2020, 15:06 IST
PTI
New Delhi, Feb 14 () Budget carrier SpiceJet on Friday posted a net profit of Rs 73.2 crore for the three months ended December.

"This profit is after a non-cash forex charge on account of Ind AS 116 of Rs 75.9 crore without which the profit would have been Rs 149.1 crore," the airline said in a release.

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Ind AS 116 or Indian Accounting Standard 116 pertains to leases.

In the 2018 December quarter, the carrier recorded a profit of Rs 55.1 crore.

Operational revenue in the latest December quarter climbed 47 per cent to Rs 3,647.1 crore. In the year-ago period, the same stood at Rs 2,486.8 crore.

SpiceJet Chairman and Managing Director Ajay Singh said the airline has done remarkably well in the latest quarter, despite a substantial profit hit from the grounding of MAX aircraft.

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Last year, Boeing 737 MAX planes were grounded worldwide in the wake of two fatal crashes involving the aircraft.

"We were expecting the MAX to return to service by January 2020 but that hasn't happened.

"The continued grounding and the delay in its return to service has undoubtedly hit our growth plans adversely and resulted in inefficient operations and increased costs," Singh said.

SpiceJet is the only domestic carrier having MAX aircraft in its fleet. The budget airline grounded 13 such planes in March last year.

Singh said the airline expects to grow profitably, while maintaining a tight control over costs. RAM RAM BALBAL

(This story has not been edited by www.businessinsider.in and is auto–generated from a syndicated feed we subscribe to.)
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