Spicejet flies back into black, net Rs 56 cr | business | Hindustan Times
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Spicejet flies back into black, net Rs 56 cr

After being in the red for five consecutive quarters, budget carrier Spicejet flew into profitability, reporting a net of Rs 56 crore in the June quarter against a loss of Rs 71.96 crore a year ago, spurred by significant sales growth and better yields.

business Updated: Jul 30, 2012 22:54 IST

After being in the red for five consecutive quarters, budget carrier Spicejet flew into profitability, reporting a net of Rs 56 crore in the June quarter against a loss of Rs 71.96 crore a year ago, spurred by significant sales growth and better yields.

The Chennai-based Kalanithi Maran-promoted carrier also posted a 51% growth in sales at Rs 1,406.74 crore in the April-June quarter, compared to R930.75 crore year-on-year, according to the company.

The average revenue per passenger during the quarter increased 24%, while number of passengers increased by 26%.

Besides, the seat factor also rose to 80.3% from 78.9%, the company said, adding the period also saw its market share increasing by 1.5 percentage points to 18.6%.

Though the load factors and yields have been holding firm, the high cost of operations influenced by a weak the rupee prevented the company from posting even better results, it said.

Prohibitively expensive fuel prices continue to adversely impact the civil aviation sector, it said, adding that though international crude prices have softened in recent weeks, the domestic carriers are yet to realise the benefits of such reduction in the input costs of the fuel.

In addition, the industry has also absorbed significant increases in airport charges at the Delhi airport, the company said.