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SpiceJet posts 57% growth in revenues

Fuel prices and other levies continue to pose challenges

With market share at 18.5%, becomes the third largest in domestic skies

Chennai, November 12, 2012: SpiceJet recorded yet another quarter of robust growth, with revenues increasing by 57% to Rs 1207 crore in the quarter ended September 30, 2012 as compared to Rs 766 crore same period last year.

The average realization per passenger in the quarter under review increased 37% as compared to the corresponding quarter a year ago. Load factors that are traditionally low during the July – Sept quarter dropped slightly at 66.3% as compared to 67.2% achieved last year.

High fuel prices along with a volatile Indian rupee continue to impact the Indian civil aviation sector as a whole. The international crude prices which saw some reduction during the previous quarter firmed up and threatened to get closer to the previously recorded highs, although we are now starting to see some signs of stability at lower levels. Fuel as a proportion of revenues was at 53% as against a comparable ratio of 62% last year; the sharp improvement in efficiency was due to better pricing discipline adopted by SpiceJet and redeployment of aircraft on to more profitable routes. During the quarter, SpiceJet opened up several new stations namely Chandigarh, Amritsar, Hubli, Dehradun, Jabalpur within the country and Kabul internationally. These sectors look very promising and we believe that with regular addition of under-served locations, SpiceJet is well poised to becoming the best network in India.

The Indian Rupee despite several expert opinions to the contrary continuous to be weak.

Despite the strident rise in yields, SpiceJet posted a Net Loss of Rs. 163.52 crore for the quarter ended September 30, 2012 as against a loss of Rs.240.07 crore for the comparable period last fiscal year.

Highlights for the quarter ended Sept 30, 2012 Vs Sept 30, 2011
  • 15.9% growth in number of passengers.
  • 20% growth of Available Seat Kilometers.
  • 48% growth in number of departures.
  • 57% increase in Revenue from Operations.
  • 37% increase in passenger yields to Rs. 4,001 from Rs 2,920.
  • Net Loss of Rs. 163.52 crore as against a loss of Rs 240.07 crore

Neil Mills, Chief Executive Officer of SpiceJet said, "Improved yields coupled with effective cost controls helped the company perform better in what is always a weak quarter for the airline business. Increase in international operations and an improved fleet management helped us deliver better numbers for the quarter. Fuel costs and a weakened INR continue to be a cause of worry for the aviation sector. But, we are extremely encouraged by the fact that the Central Government is proactively addressing the several pain points that torment the struggling civil aviation industry. We hope to see better days in the near future"

About SpiceJet:
SpiceJet is India’s most preferred airline, with 18.5% of market share in Indian domestic market, delivering the lowest air fares with the highest consumer value. The airline currently operates more than 300 daily flights to 38 Indian cities and 4 international destinations.

The city of Agartala, Ahmedabad, Bengaluru, Bagdogra, Chennai, Coimbatore, Delhi, Guwahati, Goa, Hyderabad, Jammu, Jaipur, Kochi, Kolkata, Kozhikhode , Madurai, Mangalore, Mumbai, Pune, Port Blair, Srinagar, Surat, Varanasi and Vishakhapatnam and four international destinations namely Dubai, Colombo, Kabul and Kathmandu are connected using our new generation fleet of 35 Boeing 737-800/ 900ER aircrafts which are of the highest standard in safety and operating efficiency.

SpiceJet has acquired 12 new Bombardier Q400 aircraft for enhancing connectivity to Tier II and Tier III cities. On this aircraft SpiceJet now flies to Amritsar, Aurangabad, Bangalore, Bhopal, Kozhikhode, Chennai, Chandigarh, Goa, Hyderabad, Hubli,Indore, Kochi, Madurai, Mangalore, Rajahmundry, Srinagar, Tirupati, Tiruchirapalli, Thiruvananthapuram, Tuticorin, Vijayawada, and Vishkhapatnam.
SpiceJet is the winner of:
  • Voted amongst the Top 5 Best Budget Airline in Asia – Smart Travel Asia (2008, 2009 & 2012)
  • India’s International Low Cost Carrier of the Year- 2012 by Travel Agents Association of India (TAAI)
  • India’s Most Outstanding Airline LCC-Domestic Award, by Travel and Hospitality,( Feb 2012)
  • Awarded for Best Website at ‘World Low Cost Airlines Asia Pacific Conference’, (2010 & 2012)
  • Voted as India’s Best Low Cost Airline for 3 consecutive years by Outlook Traveler (2008, 2010 & 2011)
  • CIO 100 Award in IT efforts for customer satisfaction and business growth category(2007, 2008 ,2009 & 2011)
  • India’s best low-fare airline in a survey conducted by MaRs on behalf of Hindustan Times (Dec 2009)
  • World Travel Market Award for multi-channel approach in distribution (November 2009, London)
  • National Award (ICWAI) for excellence in Cost Management (March 2009)