SpiceJet in take-off stage! It books profit of Rs 71.80 crore in Q1

SpiceJet remained successful for the second consecutive quarter by earning a profit of Rs 71.80 crore in the first quarter (Q1) of the current fiscal over a net loss of Rs 124.1 crore during the same period last year.

This profitable quarter follows a profit of Rs 22.5 crore during the fourth quarter (Q4) of the last fiscal, reported the Economic Times.

The Gurgaon-based company said in a press release: "The airline recorded a load factor of 89.8% for the quarter, the highest in the industry. This load factor reflects an increase of 14.8% over the same period last year. In line with year-on-year capacity reduction of 33% that was driven by fleet reductions in late 2014, the airline's revenue for the quarter was down 34% relative to same period last year."

Costs for the quarter were down 42% relative to same period last year, primarily due to reduction in capacity.

The airline feels that it is on a right path. "This is the second consecutive profitable quarter and I am proud of what we have achieved. But there is still a long way to go. I am confident that the best is still ahead of us," SpiceJet Ltd Chairman Ajay Singh was quoted in the release.

The company had announced a net profit of Rs 22.5 crore for the fourth quarter ending March 31, 2014 as compared to a loss of Rs 321.5 crore during the same quarter last year.

The airline also reduced losses during the FY15 fiscal to Rs 687.05 crore from Rs 1,003.24 crore during FY14 due to lower cost of operations on the back of curtailment of schedule and renegotiation of contracts and settlements under its new promoter.

SpiceJet, which had shut operations for a day in December 2014 due to financial problems, got a new promoter under Chairman and Managing Director Ajay Singh, who along with his associates have a 60% stake in SpiceJet.

Singh pumped in about Rs 650 crore since the time he took over the company. It has also cleared Rs 400 crore liabilities and Rs 200 crore of bank loans since the time new promoters have taken over.

(Image: Reuters)