Spice Jet posts record profits of $36.7m for Q2

The low-cost carrier is flying high on Jet’s woes and Boeing compensation for grounded 737 Max jets
SpiceJet, Low-cost carriers, Indian airlines, Financial Performance, Financial Results, Boeing 737 MAX 8, Boeing 737 MAX 8 grounding

Low-cost Indian carrier SpiceJet posted its highest-ever Q2 profit at Rs 261.7 crore (nearly $36.7) for the April to June quarter.

Ajay Singh, chairman and managing director at SpiceJet said: "SpiceJet has been on a spectacular growth journey and this quarter, in particular, has been very special for us. We added 32 aircraft to our fleet expanding at a pace unprecedented for a sector plagued by crisis showcasing our robust business model and proven operational capabilities."

SpiceJet expanded aggressively after the grounding of Jet Airways in April; obtaining several domestic slots at key airports left vacant by Jet Airways. The airline had been on the verge of shutting down in 2015.

During the quarter SpiceJet added 32 aircraft and the total feet at the end of June quarter stood at 107 planes. The airline had the industry's highest domestic passenger load factor of 93.8 per cent during the April-June period, SpiceJet said in a press release.

The airline has been allotted an additional 48 domestic and international departure slots in Mumbai and 15 domestic and international departure slots in Delhi. Starting April 1, 2019 the airline has announced 130 additional flights that includes 78 flights connecting Mumbai, 20 flights connecting Delhi and 12 flights connecting Mumbai and Delhi, SpiceJet said.

Spicejet’s passenger fares increased by 11% in the quarter. The additional aircraft inducted into the fleet afforded the carrier the ability to increase seat capacity by 31%. The airline boasted the best passenger load factor among the country’s airlines in the same quarter. 

The airline’s fleet of 13 Boeing 737 Max jets were grounded in March by Indian regulator DGCA. SpiceJet claimed compensation of Rs 114.1 crore ($17.15 million) from Boeing for the grounding of the aircraft, which has been disputed by its auditors.  

Boeing has disclosed an amount of $4.9 billion as payment to customers, including compensation to airlines for the grounding and delayed deliveries of 737 Max aircraft.

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