SpiceJet reports 33% increase in Q3 operational profit

SpiceJet, an Indian low-cost carrier, has announced a 33% increase in operational profit during the third quarter following the expansion of its fleet and addition of new routes in 2019, the company said.

Operating profit rose to INR 732 million (USD 10 million) during the third quarter ending in December, up from INR 550 million for the same period in 2018. Operating revenue rose 47% year-on-year to INR 36.5 billion.

Increased revenue was partially offset by a 52% year-on-year rise in expenses from INR 25 billion during the third quarter of 2018 to INR 38 billion in 2019.

Capacity, in ASKs, grew by 59% year-on-year during the third quarter as SpiceJet ended the year with 119 aircraft. The carrier´s growth plans were stunted, however, with 13 Boeing 737 Max jets remaining in storage since March due to the worldwide grounding of the aircraft.

During the third quarter, the airline added 65 new domestic flights, increasing connectivity between hubs and regional destinations within India. It became the first carrier to launch a nonstop flight between Ahmedabad and Aurangabad; Pune and Jodhpur; and Chennai and Durgapur.

SpiceJet´s steps to strengthen its network during the third quarter also included signing a codeshare agreement with Emirates Airline and a memorandum of understanding with Gulf Air for interline and codeshare agreements.