Media Centre

SpiceJet Clocks 2nd Successive Profitable Year and 9th Consecutive Profitable Quarter
Adds capacity on key metros and regional routes
Registers record Load Factor of 90% + for 24 successive months.
No.1 in on-time performance for 2016-17

Gurgaon, June 03, 2017: SpiceJet reported a quarterly profit of INR 41.6 crore for the three months ended March 31st, 2017, making it the ninth successive profitable quarter for the airline. Net profit for FY 2017 stood at INR 430.7 Crore, making this the second successive year of profitable growth.

Operating revenues were at INR 1625.7 crore for the reported quarter and INR 6191.3 crore for the fiscal 2017. On an EBITDA basis, profit is INR 111.2 crore for the reported quarter and INR 694.4 crore for the fiscal 2017. On an EBITDAR basis, the profit is INR 363 crore for the reported quarter and INR 1654.9 crore for the fiscal 2017.

SpiceJet’s strong operational performance comes despite significant headwinds. Demonetization resulted in significant decline in yield in Q3 and Q4. Increase in fuel cost was at 46% in Q4 eroding approximately Rs. 160 crore of profit.

These headwinds have subsided and SpiceJet is bullish about its future prospects. “Two successive profitable years, a record aircraft order and emerging as India’s largest regional operator are testament of the fact that SpiceJet remains firmly on track on its long term growth strategy,” said Mr. Ajay Singh – CMD, SpiceJet.

“SpiceJet continues to invest aggressively in creating capacity in line with forecast. We overcame a complete operational shutdown and placed the biggest order for 205 aircraft in our history.”

During this fiscal, SpiceJet completed its turnaround successfully by discharging all its obligations to its Business Partners, implemented cost savings measures by restructuring contracts and its business processes. The order of 205 aircraft signifies the strategic direction in which SpiceJet is now committed upon. The USD 22 billion (Rs. 1,50,000 crore) aircraft order is the biggest ever placed by any Indian airline with Boeing in its history. The historic order ends the turnaround phase for SpiceJet and marks the beginning of a growth story, which will see the airline expand its wings – both within and outside the country.

FY 17 saw SpiceJet perform exceptionally well on all operational parameters. The airline clocked the best on-time performance of all airlines in India for 2016-17. SpiceJet’s rate of cancellation of flights was one of the lowest. Its load factor of over 90% for 24 months in a row has no parallel globally.

SpiceJet rode high on regional connectivity during the quarter. Besides adding capacity on existing routes, the airline was awarded 6 proposals and 11 routes under the UDAN scheme. With three-year exclusivity on the routes under the UDAN scheme, SpiceJet will be the only airline to operate on those sectors. This summer the airline increased its regional capacity by 25% and will further augment capacity in this segment. The airline is also set to benefit from the reduced cost on account of low ATF taxes and exemption from landing and parking charges at regional airports under the regional connectivity scheme.