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Kamal Narang

Mr Siddhanta Sharma, Executive Chairman, SpiceJet, and Mr Tom Ronell, CEO, Istithmar World Aviation Holdings, at a press conference in the Capital on Tuesday. —

Our Bureau

New Delhi, Jan. 22 Low-cost airline SpiceJet has recorded a net profit of Rs 9.34 crore during the third quarter ending December last year down from Rs 12.3 crore recorded during the same period in the previous year.

Addressing a press conference, the Executive Chairman, Mr Siddhanta Sharma, said that the airline earned non-operating income of Rs 5.76 crore from sale and lease back of two aircraft, besides foreign exchange fluctuation provided an income of Rs 3.53 crore during the third quarter ending December 2007. The increase in fuel prices was one of the main reasons for a dip in profitability.

The operating profit of the airline has, however, improved. The airline has recorded a operating profit of Rs 4 lakh for the quarter ending December last year against a loss of Rs 26 crore reported during the same quarter in the previous year. The airline plans to increase ancillary revenues to 8-9 per cent of total revenues by starting sale of on-board sale of items and diversifying into the cargo business. At the moment the airline earns ancillary revenues from sale of food, in-flight advertisement and sale of co-branded credit cards.

The airline board on Tuesday also approved a proposal for inducting 10 Boeing 737-800 aircraft into the fleet from 2011. “The list price for the aircraft is $600 million. The deliveries would be completed in 2013 by when we would have a fleet of 40 aircraft. The aircraft would allow us the option of flying abroad for which the airline will become eligible in 2010,” Mr Sharma said.

The airline plans to look at route in the Gulf region, South East Asia and the Central Asian countries, airline officials said. The airline also announced that it would start flights to Bagdogra and Vizag soon.

Later speaking to the media, Mr Sharma said that the spiralling cost of aviation turbine fuel was adversely affecting the airline.

“We may look at increasing the fuel surcharge if the price of ATF increases by more than Rs 1,500 per kilolitre. If the increase in fuel prices is between Rs 1,000 and Rs 1,500 we are unlikely to increase the current fuel surcharge,” he said.

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