Economy

SpiceJet FY net soars 65%

Our Bureau Chennai | Updated on March 12, 2018 Published on May 27, 2011

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Low-cost carrier SpiceJet has posted a 65 per cent growth in net profit at Rs 101.2 crore for the year ended March 31, 2011, against Rs 61.6 crore for the previous financial year.

Income from operations went up to Rs 2,879 crore during the year under consideration from Rs 2,181 crore in the previous year.

The profit growth is despite a significant rise in fuel costs and a very challenging pricing environment in the January-March quarter, says a release from the company.

Reflecting the robust growth in domestic passenger traffic, SpiceJet, in 2010-11, saw a 30 per cent increase in traffic as against the industry growth of 19 per cent.

According to the release the quarterly load factors touched 80 per cent during the January-March 2011 quarter and the airline closed the year with a domestic market-share of 13.6 per cent.

SpiceJet's market share increased to 13.3 per cent in FY 10-11 against 12.3 per cent during 2009-10. The airline expects the demand scenario to continue to remain robust and expects a 14-16 per cent domestic demand growth during current financial year.

The release quoting the company's CEO, Mr Neil Mills, says, “We are now in a phase of rapid expansion and are looking at an aggressive addition to our fleet in the next year.”

It further says the most interesting development will be the start of its Q400 turbo-prop operations which is planned for the month of July.

“This will take us to the next level of growth,” Mr Mills was quoted as saying.

In line with the company's Chairman, Mr Kalanithi Maran's plan to strengthen domestic connectivity to Tier-2 and Tier-3 towns, SpiceJet announced their order of 30 Q400 NextGen turboprop aircraft from Bombardier Inc of Canada in September 2010. Hyderabad's Rajiv Gandhi International Airport will be the first base for SpiceJet's turbo-prop operations, expected to begin in July 2011, the release adds.

SpiceJet plans to add seven Boeing 737s during this year to its operational fleet of 25 aircraft to capitalise on the expected domestic demand growth. SpiceJet also plans to scale-up its international operations by commencing services to destinations in South Asia and West Asia. The airline plans to have around 70 aircraft in its fleet by 2013 including the Q400 Bombardier aircraft.

SpiceJet shares closed the day at Rs 39.40 on BSE from the previous day's close of Rs 39.65.

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Published on May 27, 2011
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