MUMBAI:
Discount carrier SpiceJetBSE 3.25 %posted a profit of
Rs 102 crore (post tax) for the quarter ending December as against a loss of Rs
39 crore for the corresponding quarter last year.
The airline attributes these numbers to maximum fleet utilization and an altered route mix on the regional as well as the international flights.
Despite a dip in passenger numbers sequentially the airline has managed to increase the number of passengers on its flights across the network by seven percent, though much of this comes from an increased number of flights on its international network
As the fuel costs have remained high for the quarter, SpiceJet has managed successfully to palm off the burden to passengers thereby increasing yields by 29% for the quarter when compared to the corresponding quarter last year.
"With better fleet optimization, an altered route mix (thanks to more international flights) and higher yields, fuel cost as a proportion fell to 45% of the total revenue in the current quarter as against 50% in the comparable quarter for the previous year," the airline said.
Revenue for the third quarter ended December 31, 2012 increased by 37% to Rs. 1,603 crore as compared to Rs. 1,173 crore of the corresponding quarter a year ago as the airline increased its market share to 19.20% from 16.80% in December 2011.
"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, said.
Equity analysts sais that SpiceJet results are an indication that there are structural changes in the industry that will help the overall environment.
Sharan Lillaney of Angel Broking who tracks the company and the sector said SpiceJet's profit is a result of contribution from retail and expansion on the international network. He also said that deployment of smaller regional aircraft like the Bombardier's Q400 helped the airline a growth of 80% on the regional routes.
Though there is lesser capacity available in the market, according to Lillaney, despite a dip in the passenger numbers SpiceJet has expanded its passenger base by seven percent as the number of aicrfat flying is reduced to 320 from a previous 380.
"SpiceJet would continue to concentrate on regional and international routes and its performance is not a one off," said Lillaney.
SpiceJet stock went up by 5.35% after the result was announced gaining Rs 2.35 at Rs 46.30 a piece.
The airline attributes these numbers to maximum fleet utilization and an altered route mix on the regional as well as the international flights.
Despite a dip in passenger numbers sequentially the airline has managed to increase the number of passengers on its flights across the network by seven percent, though much of this comes from an increased number of flights on its international network
As the fuel costs have remained high for the quarter, SpiceJet has managed successfully to palm off the burden to passengers thereby increasing yields by 29% for the quarter when compared to the corresponding quarter last year.
"With better fleet optimization, an altered route mix (thanks to more international flights) and higher yields, fuel cost as a proportion fell to 45% of the total revenue in the current quarter as against 50% in the comparable quarter for the previous year," the airline said.
Revenue for the third quarter ended December 31, 2012 increased by 37% to Rs. 1,603 crore as compared to Rs. 1,173 crore of the corresponding quarter a year ago as the airline increased its market share to 19.20% from 16.80% in December 2011.
"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, said.
Equity analysts sais that SpiceJet results are an indication that there are structural changes in the industry that will help the overall environment.
Sharan Lillaney of Angel Broking who tracks the company and the sector said SpiceJet's profit is a result of contribution from retail and expansion on the international network. He also said that deployment of smaller regional aircraft like the Bombardier's Q400 helped the airline a growth of 80% on the regional routes.
Though there is lesser capacity available in the market, according to Lillaney, despite a dip in the passenger numbers SpiceJet has expanded its passenger base by seven percent as the number of aicrfat flying is reduced to 320 from a previous 380.
"SpiceJet would continue to concentrate on regional and international routes and its performance is not a one off," said Lillaney.
SpiceJet stock went up by 5.35% after the result was announced gaining Rs 2.35 at Rs 46.30 a piece.
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