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Gurugram, August 14, 2018: SpiceJet, for the Quarter ending June 2018,
reported a net profit of INR 25.4 crore before exceptional item; registering its 14th
consecutive profitable quarter excluding exceptional item. The company has taken a
provision of INR 63.5 Crore as an exceptional item on account of an arbitration award
that cited interest payable of INR 92.5 Crore and interest receivable of INR 29 crore
for SpiceJet. With this one time provision, SpiceJet has now fully provided for the
maximum amount that may be payable under the arbitration award.
In addition to the above exceptional item, SpiceJet accounted for INR 51 Crore as forex
losses (that includes the provision of INR 25.2 Crore of aforesaid forex revaluation)
due to the depreciation of the Indian Rupee.
Income was INR 2,270.8 Crore for the reported quarter as against INR 1,886.3 Crore in
the same quarter last year. For the same comparative period, expenses were INR 2,245.4
Crore as against INR 1,711 Crore; EBITDA before exceptional items were INR 118.7 Crore
as against INR 248.4 Crore; EBITDAR before exceptional items were INR 398.4 Crore as
against INR 479.4 Crore.
The Company additionally paid an amount of INR 203 Crores on account of increase in cost
of Aviation Turbine Fuel and an amount of INR 44 Crores on account of forex losses as
compared to Q1 2017. A superior revenue performance ensured that an amount of INR 99
Crores of these losses was offset by an increase in revenue.
In percentage terms, income per ASKM grew by 6% as compared to same quarter last year
due to increase in passenger load factor, and an increase in average fares and
ancillary revenues; operating expenses per ASKM increased by 15% on account of 34%
increase in ATF and 4% increase in exchange rate.
While the industry has been plagued with adverse macroeconomic conditions in the form of
rising crude oil prices and weakening rupee, SpiceJet was able to demonstrate a
superior revenue performance to overcome this drag and has been able to generate
positive cash flow.
Ajay Singh, Chairman and Managing Director, SpiceJet, said, “SpiceJet
has delivered yet another operational profitable quarter despite surging oil prices and
a weak rupee. As we start inducting the new fuel-efficient B737 MAX and the Bombardier
Q400, we will be able to significantly reduce our overall costs even as we aggressively
expand our network both in India and overseas. We are confident that our operating
model is robust to deal with this current unfavorable macro-economic headwinds”
In terms of operational parameters, SpiceJet had the best passenger load factor amongst
all airlines in the country during the quarter. The average domestic load factor for
the quarter was 94.53%. For 39 months in a row, SpiceJet has flown with the highest
load factors in the Indian aviation market and for 38 months in a row the loads have
been in excess of 90%, a feat unparalleled globally.
During the quarter, SpiceJet launched Spice Star Academy a first of its kind initiative
by any airline where students will be offered a Bachelor of Business Administration
degree recognized by UGC from Amity University along with a placement opportunity at
SpiceJet. The state-of-the-art academy will nurture aspiring young men and women who
wish to join the aviation industry through best-in-class training programs.
SpiceJet has been at the forefront driving the national agenda of UDAN or the regional
connectivity scheme. During the quarter, SpiceJet launched four new routes namely Hubli
– Chennai, Hubli – Hyderabad, Adampur – Delhi and Kanpur – Delhi. The airline now
operates on all sectors allotted under UDAN I and has also begun operations to airports
like Hubli, bagged under UDAN II.
SpiceJet currently operates 15 flights under UDAN on the routes of --- Mumbai-Porbandar,
Mumbai-Kandla-Mumbai, Hyderabad-Puducherry-Hyderabad, Jaipur-Jaisalmer-Jaipur,
Delhi-Adampur-Delhi, Chennai-Hubli-Chennai and Hyderabad-Hubli-Hyderabad.
Key business updates
SpiceJet is poised to induct 15 aircraft till December 2018. These include 11 737 MAX
and 4 Bombardier Q400s. As indicated, the 737 MAX shall reduce costs by 8 - 9% as
compared to the previous generation and the new generation Q400s with additional
seating capacity is expected to improve the overall operating economics of this
aircraft by 15 – 18%. This will also enhance capacities in the regional and UDAN
routes.
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