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SpiceJet posts Rs5.6bn operating profit in fiscal 2017

SpiceJet achieved profitability for a third consecutive year, posting an operating profit of Rs5.57 billion ($82.8 million) in its fiscal 2017, a 43.4% year-on-year increase.

Consolidated revenue for the year ended 31 March rose 25.9% to Rs79.3 billion, as income from operations jumped 26.5% to Rs77.3 billion.

Expenses was up 24.7% to Rs73.7 billion, driven by various factors including higher charges in fuel, maintenance expenses, and employee benefits.

Net profit rose 30.4% from Rs4.27 billion to Rs5.57 billion.

Despite the stellar annual performance, its fourth quarter performance was disappointing. Operating profit plunged 83.1% to Rs405 million. Revenue fell 1.1% to Rs20.9 billion, while expenses rose 9.4% to Rs20.5 billion.

In a statement, SpiceJet pointed out that yields per RPK for the year rose 9%, bring load factor to a record 94.7%. It also launched five new domestic destinations under India's regional connectivity scheme.

For the current fiscal year, the low-cost carrier expects to receive 19 Boeing 737 Max jets, as well as eight new Bombardier Q400s.

"Despite rising fuel prices, SpiceJet continues to record profits and has recorded the highest annual profit in its history. With the fuel efficient B737 Max joining our fleet in the coming months we will continue to expand at home and abroad and strive to improve profitability and operating performance," says the low-cost carrier's chairman and managing director Ajay Singh.

SpiceJet's board of directors have also re-appointed Singh for another five-year term as managing director, effective 21 May.

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