SpiceJet on Tuesday swung to a first quarter profit versus loss last year. This is the airline’s second straight consecutive profit.
SpiceJet, which was bailed out by its co-founder Ajay Singh earlier this year, posted first quarter net profit of Rs.72.80 crore in the first quarter of fiscal 2016, when compared to a net loss of Rs.124.10 crore in the same period last year.
The airline posted positive EBITDA of Rs.126.70 crore in the first quarter, when compared to a loss of Rs.43.10 crore in the comparable period last year.
SpiceJet recorded a load factor of 89.8 per cent for the quarter, the highest in the industry. This load factor reflects an increase of 14.8 per cent over the same period last year.
“We are working hard to build a world class airline again. These results show that we are on the right path,” Ajay Singh, Chairman, SpiceJet Ltd, said in a statement.
He also said there was still a long way to go and confident that the best is still ahead for the airline. Since his come back, Mr. Singh has been focusing on cutting unviable routes and costs.
“We have made significant improvements in our cash flows and liquidity position, and have been discharging our obligations on time. We are emphatically no longer under financial stress. During this quarter, we have re-inducted an aircraft that had previously been returned and are in discussions to re-induct few more, which reflects renewed lessor confidence in SpiceJet”, Kiran Koteshwar, Chief Financial Officer, SpiceJet said.
