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04-Nov-2010 7:13 PM

SpiceJet reports 4th consecutive profitable quarter in 2QFY2011, to double fleet by 2013

Direct News Source

Domestic industry traffic continued to show a robust growth of 12% over the same period previous year, even though this is a traditionally weak quarter. Low fare carriers continued to grow in proportion and increased their share of the pie from 61% to 71% during this period. Yields moved up and stabilized – an indication that capacity addition of 9% continued to lag behind demand growth.

SpiceJet posts a profit of INR100 million in 2QFY2011

Highlights for the quarter ended September 30, 2010 vs September 30, 2009
Operational
  • 16 % growth in number of passengers.
  • 14 % growth of Available Seat Kilometres.
  • 15 % growth in number of departures.
Financial
  • 40% increase in Revenue from Operations.
  • 22% increase in Revenue per Available seat Kilometer.
  • 9 % reduction in Non-Fuel Cost per Available Seat Kilometer.
  • EBIDTAR margin improved from negative 2.7% to positive 17%.
  • EBIDTA margin improved from negative 24.6% to positive 0.6%
  • Net Profit of ` 10.1 crore compared to a Net Loss of ` 101.3 crore.
Business Update for July - September 2010

SpiceJet continued to outperform the broad industry with a 16% growth in passenger traffic. SpiceJet also improved its market share to 12.8% from 12.6% during the same period in the previous year.

During this quarter, SpiceJet commenced flights to Madurai, the 20th destination on their domestic network and opened bookings for their first 2 international flights, viz., Delhi-Kathmandu and Chennai-Colombo.

Neil Mills, Chief Executive Officer, added "We are very proud that we have demonstrated the robustness of our business model by turning in a profitable performance during the traditionally weak July-September quarter. At the end of the quarter, SpiceJet has a positive Net Worth and over ` 600 crores cash.

We are very optimistic of our future and had recently placed an order of 30 aircraft with Boeing to ensure that we continue to grow our business. We are in the process of enhancing our fleet in the immediate future and are looking at an aggressive addition to our fleet to double it from the current 22 aircraft by end 2013."
Regional Connectivity

"As part of our new vision, we believe that the enormous potential in the Indian domestic market can be further tapped by enhancing regional connectivity in the country by focusing on Tier II and Tier III cities. We have selected the Q400 NextGen turboprop aircraft from Bombardier Inc. of Canada to facilitate this objective. The SpiceJet Board has, today, approved an order of upto 30 aircraft with deliveries commencing second quarter 2011 and we are in the process of obtaining the necessary regulatory approvals and documentation for the same and expect to be the first to introduce this superior aircraft type into India. " Mr. Mills concluded.

The Q400 aircraft is the most technologically advanced turboprop airliner and features a revolutionary Noise and Vibration Suppression (NVS) system, which makes this aircraft the quietest, most vibration-free turboprop in the sky. The Q400 aircraft's exceptional cruise speed places it on a par with a jet aircraft and its ability to climb as well as a comparable jet allows the Q400 to reach its optimum cruise altitude sooner in order to take full advantage of its high speed capabilities. The Q400 turboprop uses upto 40% less fuel than comparable regional jet or older generation turbo-prop aircraft.