Despite Boeing 737 MAX fiasco, SpiceJet Q4 profit up by 22% to Rs 56.3 crore

SpiceJet posted its Q4 results on Tuesday. The private aviation player reported a 22% jump in net profit for the March quarter despite grounding of Boeing MAX aircraft this year. The airline had a profit of Rs 56.3 crore for the quarter ended March 31st, 2019 as compared to Rs 46.2 crore in the corresponding quarter in 2018. The airline's capacity (in terms of seat kilometer) was up by 21% while average fare rose 11% during fourth quarter. While operating revenues rose to Rs 2,531.3 crore for the reported quarter.

SpiceJet also said in a statement, ''The reported quarter profit does not include any form of reimbursements or compensation on the grounded aircraft and for which SpiceJet is working with the manufacturer.''

Ajay Singh, Chairman & Managing Director, SpiceJet said, “SpiceJet has posted a strong recovery in last two quarters after suffering a loss of INR 427.5 crore in the first two quarters due to steep increase in fuel costs and sudden depreciation of the rupee. This recovery comes despite the unprecedented challenges we faced during Q4 FY2019 which saw the grounding of as many as 13 of our MAX planes."

However for the financial year ending March 31, SpiceJet reported a net loss of  Rs 316.1 crore in FY 2019. Operating revenues of the company were at Rs 2,531.3 crore for the reported quarter and Rs 9113.2 crore for the fiscal 2019. While on an EBITDA basis, profit is Rs 122.8 crore for the reported quarter and Rs 48.4 crore for the fiscal 2019. 

On tuesday, SpiceJet shares closed 1.5% higher at Rs 148 on BSE, after hitting a fresh 52-week high of Rs 153 earlier in the session.

The year under review posed multiple unprecedented challenges such as the worldwide grounding of the Boeing 737 MAX which led to the overnight grounding of SpiceJet’s MAX fleet. Further, this year saw a 25% increase in aviation turbine fuel prices and 9% depreciation of the Indian rupee that resulted in cost escalations of Rs 695 crore and Rs 285 crore respectively.