Beating market expectations Kalanithi Maran-promoted low-cost carrier SpiceJet on Monday posted a net profit of Rs 56 crore for the three months ended June 30,2012 the first profitable quarter for the airline after being in the red for five consecutive quarters. SpiceJet had reported a net loss of Rs 71.96 crore during the same period of last fiscal.
The markets responded favourably to the figures posted by SpiceJet as its shares jumped 22.42 per cent on the BSE to close at Rs 30.85 after having hit an intra-day high of Rs 31.45.
The profitable first quarter for the carrier was mainly driven by new routes and increased load factor,Neil Mills,chief executive officer of SpiceJet,said.
The carrier posted 51 per cent growth in sales at Rs 1,406.74 crore compared with Rs 930.75 crore in the same quarter last year. The average revenue per passenger during the quarter increased 24 per cent,while the number of passengers carried rose by 26 per cent,the airline said.
Our market share has increased by 1.5 percentage points to 18.6 per cent during the quarter and it has nothing to do with the crisis at any other carrier. We have been adding new routes to out network with the new Bombardier Q400 and most of these routes are giving good returns, Mills said,adding that the high cost of operations influenced by a weak rupee and airport charges have prevented the company from posting even better results.
SpiceJet will continue to do well in the next quarter as well because of the lower capacity in the market coupled with a possible fare increase, Sharan Lillaney,research analyst at Angel Broking said.