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SpiceJet's Q3 operating profit falls 77%

SpiceJet made an operating and net profit of Rs550 million ($7.72 million) during its third quarter, down 77% compared with the same period in 2017.

Revenue for the three months to 31 December 2018 jumped 20% to Rs25.3 billion. However, expenses rose by a third to Rs24.8 billion due to higher operating, leasing, airport, and maintenance costs.

The airline's load factor clocked in at 91.6% for the quarter, down from 95% in the same period last year. Yield, however, increased by 8% over the three months.

Over the three month period, SpiceJet added 12 new planes – nine Boeing 737 Max 8s and three Bombardier Q400s. As of 31 December, the carrier's fleet size stood at 74 aircraft, which included 37 737 NGs, 10 737 MAX 8s, 26 Q400s, and one 737 freighter.

In the first nine months, SpiceJet swung to an operating loss of Rs3.09 billion as compared to an operating profit of Rs5.2 billion. Revenue grew 15.1% to Rs66.9 billion, but a 32.3% climb in expenses to Rs70 billion offset the revenue growth. It also made a net loss of Rs3.72 billion, as it incurred an exceptional expense of Rs635 million.

During the fourth quarter, SpiceJet expects to induct seven 737 Max 8s and one 737 freighter..

The low-cost carrier adds that in the year ahead, it plans to carry on with its "aggressive network expansion" in both domestic and international markets.

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