Budget carrier SpiceJet, on Monday, reported a net profit of Rs.102 crore for the third quarter ended December 31, 2012 as compared to a net loss of Rs.39 crore during the same period of the previous year.

In the second quarter, the airline had reported a net loss of Rs.163.52 crore.

The airline increased its domestic market share to 19.20 per cent in December, 2012, from 16.80 per cent in December, 2011.

Revenues for the third quarter increased by 37 per cent to Rs.1,603 crore from Rs.1,173 crore in the same quarter of the previous year.

The airline said the turnaround was possible due to better fleet optimisation and higher yields accrued from passenger operations.

During the quarter, fuel cost for the airline as a proportion fell to 45 per cent of the total revenues in the current quarter as against 50 per cent in the same period last year.

As a result of high airfare charged by airlines as well due to the peak season demand, the average passenger yield of SpiceJet increased by 29 per cent to Rs.4,412 in the said quarter from Rs.3,421 in the corresponding quarter a year ago.

“To announce a profit of Rs.102 crore for the third quarter in the current challenging environment is a huge achievement and clearly demonstrates that the strategic changes that SpiceJet have made in the last two years has created a platform for future success of the company,” said Neil Mills, Chief Executive Officer, SpiceJet Ltd.

During the third quarter, SpiceJet carried 7 per cent more passengers as compared to the same period last year. The airline also witnessed 25 per cent growth in the number of departures especially due to induction of Bombardier Q400 aircraft for its regional services.

“SpiceJet has done very good but I don’t think they would be able to repeat it. Oil prices are increasing and airfares are coming down. The Kingfisher factor benefited all airlines in the last quarter as the airline finally closed down in October, prompting others to jack up prices. Better yields, improved performance and cost control helped SpiceJet make an impressive turnaround,” said Ambareesh Baliga, Independent stock analyst.

“The numbers are good. Absolutely brilliant. This was possible due to volume growth and tighter control on cost. The stock will appreciate,” said Kishor Ostwal, Chairman, CNI Research.SpiceJet share surged 7 per cent to finally close with a gain of 5 per cent at Rs.46.15 on the BSE on Monday.

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