SpiceJet Reports Rs. 22.5 Crore Net Profit SpiceJet Reports Rs. 22.5 Crore Net Profit

-Returns to profitability after 7 quarters

-First profitable Q4 after 2010 

SpiceJet today reported a net profit of Rs 22.5 cr for Q4FY15, a turnaround from the net loss of Rs 321.5 cr for the same quarter last year. On an EBITDA basis, SpiceJet reported positive Rs 80cr, against negative Rs 235cr the previous year.

The numbers above include the benefit of renegotiated contracts and settlements, the provisioning for re-delivery expenses, and a net gain on an insurance claim.

The company, which changed hands during the quarter and is now under its original Founder-Director and now Promoter, Chairman, and Managing Director Mr. Ajay Singh, has focused on restoring operational reliability and winning back customer confidence to boost revenues, while negotiating settlements and re-negotiating several major contracts to bring down costs.  The airline ended the quarter with a load factor of 81%, which is a historic high for low season, as it continued its strategy of demand stimulation to maximize revenues.

“These results indicate that a recovery is in progress, and is the first tangible evidence of the ongoing revival”, said Mr. Ajay Singh, Chairman, SpiceJet Ltd. “We are confident that we will build a world-class airline and this is the first step. We still have a lot of work to do,” he said. “Our results show the resilience of the SpiceJet brand, and the unwavering faith, passion, and commitment of each and every one of our employees.  I am delighted to see the airline that I helped create this month 10 years ago starting to get back on its feet in this manner”, he added.

“I am thrilled that with the return and backing of the founder of the airline Mr Ajay Singh, SpiceJet has is clearly turning the corner.  I firmly believe this is the start of what will be noted as a historic airline turnaround not just in India, but in the world”, said Mr. Sanjiv Kapoor, Chief Operating Officer, SpiceJet. “I want to thank all of our employees, lessors and other business partners, the government, and other stakeholders who stood by us to see us through to this transformational turning point”, he added.

About SpiceJet Ltd:

SpiceJet is India’s #2 low fare airline that has made flying more affordable for more Indians than ever before. SpiceJet operates 245 daily flights to 41 destinations, including 34 Indian and 7 international cities.

SpiceJet connects its network using next generation fleet of 20 Boeing aircraft along with 15 Bombardier Q-400 aircraft.  The majority of SpiceJet’s fleet offer SpiceMAX, the most spacious economy class seating in India and perhaps the world, as an additional fee option.