Gurugram: Low-cost carrier SpiceJet on Friday reported a net profit of Rs 261.7 crore and total income of Rs 3,145.3 crore for the quarter ending June 2019 as against a loss of Rs 38.1 crore and Rs 2,253.3 crore for the corresponding quarter last year.
Operating revenues were at Rs 3,002.1 crore against Rs 2,220.4 crore for the corresponding quarter last year. On an EBITDA basis, profit is Rs 747.5 crore as against Rs 100.5 crore for the corresponding quarter last year. Operating expenses were at Rs 2,883.6 crore as against Rs 2,227.9 crore.
Effective April 1, the airline adopted the new accounting standard IND AS 116 which effectively capitalises operating leases. As a result, lease rentals are now reflected as interest and depreciation for the quarter ending June. Additionally, owing to the retrospective treatment of this standard, there is a reduction of Rs 302.2 crore from retained earnings status as on April 1.
"SpiceJet has been on a spectacular growth journey and this quarter, in particular, has been very special for us," said Chairman and Managing Director Ajay Singh. "We added 32 aircraft to our fleet expanding at a pace unprecedented for a sector plagued by crisis showcasing our robust business model and proven operational capabilities."
However, the airline operations remained stressed for a large portion of this quarter due to the continued grounding of B737 MAX aircraft which limited its ability to take its yields up owing to passenger disruptions and re-accommodation while simultaneously increasing its fixed costs on this category of aircraft.
It added additional flights on the existing B737 NG and Q400 fleet by increasing their daily utilisation to 15 to 16 hours per day and 13 to 14 hours per day respectively and then inducting 27 Boeing 737 NGs between April 1 and June 15.
On the grounded Boeing 737 MAX aircraft, the company continues to incur various costs. SpiceJet has recognized Rs 114.1 crore towards aircraft and supplemental lease rentals as other income. This is a part recognition of the total reimbursements on which the company is working with the aircraft manufacturer towards various ascertained costs and losses incurred.
"We are happy that we were able to minimise passenger inconvenience by quickly filling the capacity gap created in India's aviation sector," said Singh.
"The results would have been vastly better but for the painful grounding of the MAX aircraft. We look forward to their swift return to service in the near future that will help SpiceJet increase its margins and provide a superior level of service."
Between April and June this year, SpiceJet added 32 aircraft -- 27 Boeing 737 NG aircraft, four Bombardier Q400s and one B737 freighter. At the end of the quarter, SpiceJet's fleet size stood at 107 which included 73 Boeing 737 NG aircraft, 31 Q400s and three B737 freighters.
Currently, SpiceJet operates 550 average daily flights to 52 domestic and nine international destinations. It is the largest regional player in the country with 51 daily UDAN flights and operates to 12 destinations under the regional connectivity scheme providing air connectivity to the remotest corners of the country.