SpiceJet reports ₹73-crore profit for the December quarter

Our Bureau New Delhi | Updated on February 14, 2020 Published on February 14, 2020

Ajay Singh, Chairman of SpiceJet Ltd (file photo)   -  Bloomberg

Airline to report passenger and freight results separately from now

SpiceJet has reported a net profit of ₹73.2 crore for the quarter ended December 31 as against a net profit of ₹55.1 crore reported during the same period previously.

In a statement, the airline said the results have been achieved despite odds that the airline is facing in terms of additional costs incurred because of the continued grounding of its 737 MAX aircraft.

The statement adds that it has received an interim offer of compensation from Boeing for the grounding of the MAX 737.

In a statement, the airline said that its standalone profit from Air Transport Services (airlines) was ₹ 115 crore. Air Transport Services includes passenger transport and ancillary cargo operations from passenger aircraft operations.

“From this quarter onwards, the airline will declare its freighter and passenger segments separately in its standalone results. This is because the two segments are different from an operating and management point of view and now even the freighter business has assumed materiality,” Kiran Koteshear, Chief Financial Officer, SpiceJet, said. The latest figures show the airline’s earning of ₹3,590.80 crore from Air Transport Services as against ₹56.32 crore from freighter and logistics services in the quarter ended December last year.

The statement adds that the profit is after a non-cash forex charge on account of IND AS116 of ₹75.9 crore without which the profit would have been ₹190.9 crore.

During the latest quarter, the airline recorded an operational revenue of ₹3,647.1 crore as against ₹2,486.8 crore previously, an increase of 47 per cent.

SpiceJet’s expenses during the third quarter were at ₹3,844.1 crore against ₹2,475.8 crore reported previously. On an EBITDAR basis, the airline reported a profit ₹761.6 crore, the statement adds.

Commenting on the results, Ajay Singh, Chairman and Managing Director, said the airline has done “remarkably well this quarter despite a substantial profit hit from the grounding of the MAX aircraft, which has impacted our operations and led to additional costs.”

Boeing compensation

Commenting on the Boeing compensation offer, Koteshear said that the airline is studying the offer and will “subsequently take a call on how much of the compensation should be in cash or in other forms.”

He added that Boeing had earlier agreed to set up a Boeing 737 MAX simulator with the airline due to the regional exposure that the airline has.

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Published on February 14, 2020
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