Delhi-based low-cost airline SpiceJet has seen its net profit dip by 77 per cent to ₹55.1 crore for the quarter ended December 31, 2018 on account of increase in cost of crude oil and the depreciation of the rupee against the dollar. The airline had reported a net profit of ₹240 crore during the same period the previous year.

In a statement, the airline said that a strong 8 per cent increase in passenger yield helped it to partially offset the 34 per cent increase in crude oil prices and the 11 per cent depreciation of the rupee against the dollar. “The combined effect of these cost escalations was approximately ₹329 crore. The company also reversed some portion of its provisions on its foreign exchange obligations taken during the previous quarter for this financial year,” the airline said in a statement.

SpiceJet’s total income stood at ₹2,530.8 crore for the reported quarter as against ₹2,096.1 crore in the same quarter last year. For the same comparative period, its expenses were ₹2,475.8 crore as against ₹1,856.1 crore. On an EBITDAR basis, SpiceJet reported a profit of ₹478.6 crore.

“With sector headwinds having subsided, we are bullish on our prospects and will continue to invest aggressively in creating capacity in line with our forecasts. The new-generation 737MAX aircraft, with its cost efficiency and increased revenue opportunities, will become a substantial portion of our Boeing fleet, further improving our margins. The increased seating capacity on the Bombardier Q400s will also result in improved margins,” said Ajay Singh, Chairman and Managing Director, SpiceJet.

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