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SpiceJet posts significant quarterly profit showing strong turnaround

Delivers Rs. 102 crore in PAT for the quarter

Strong market share gains despite higher realizations

Chennai, January 21, 2013: SpiceJet has continued to successfully deliver passenger growth in the quarter and delivered a profit of Rs. 102 crore for the quarter vs a loss of Rs. 39 crore in the same period the prior 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. Notwithstanding this improvement, which certainly augurs well for civil aviation sector in the country, the fact remains that the Indian airline industry continues to bear the brunt of extremely high incidence of taxation. A weighted average tax rate of 24% on ATF prices across various stations in India is among the highest in the world and constitutes the biggest hurdle for domestic carriers in their quest for long term profitable growth.

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.

The average passenger yields in the quarter increased 29% as compared to the corresponding quarter a year ago.

Domestic market share in December 2012 increased to 19.20% from 16.80% in December 2011.

Neil Mills, Chief Executive Officer, said "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."

Highlights for the quarter ended December 31, 2012 vs December 31, 2011

Operational - Total

  • 7% growth in number of passengers
  • 18% growth of Available Seat Kilometers
  • 25% growth in number of departures

Financial

  • 37% increase in Revenue from Operations
  • 29% increase in passenger yields to Rs. 4,412 from Rs. 3,421
  • Net profit of Rs. 102 crore for the quarter compared to a Net loss of Rs. 39 crore

International

  • 80% growth in number of passengers
  • 129% growth in number departures

Domestic - Boeing

  • 2% reduction in number of passengers
  • 7% growth in number of departures

Regional

  • 82% growth in number of passengers
  • 89% growth in number of departures
About SpiceJet:
SpiceJet is India’s preferred airline, with 19.20% of market share in Indian domestic market, delivering the lowest air fares with the highest consumer value. The airline currently operates more than 330 daily flights to 42 Indian cities and 7 international destinations.

The city of Agartala, Ahmedabad, Amritsar, Aurangabad, Bagdogra, Belgaum, Bengaluru, Bhopal, Chandigarh, Chennai, Coimbatore, Dehradun, Delhi, Goa, Guwahati, Hubli, Hyderabad, Indore, Jabalpur, Jaipur, Jammu, Kochi, Kolkata, Kozhikode, Madurai, Mangalore, Mumbai, Mysore, Pondicherry, Port Blair, Pune, Rajahmundry, Srinagar, Surat, Thiruchirapalli, Thiruvananthapuram, Tirupati, Tuticorin, Udaipur, Varanasi, Vijayawada, Visakhapatnam and Seven international destinations namely Dubai, Colombo, Guangzhou, Kabul ,Kathmandu, Male and Riyadh are connected using our new generation fleet of 36 Boeing 737-800/ 900ER aircrafts which are of the highest standard in safety and operating efficiency along with our newly acquired 15 Bombardier Q400 aircraft for enhancing connectivity to Tier II and Tier III cities.

SpiceJet is the winner of:
  • Voted as India’s Best Low Cost Airline for 4 consecutive years by Outlook Traveler (2008, 2010, 2011 & 2012)
  • Voted amongst the Top 5 Best Budget Airline in Asia – Smart Travel Asia (2008, 2009 & 2012)
  • India’s International Low Cost Carrier of the Year- 2012 by Travel Agents Association of India (TAAI)
  • India’s Most Outstanding Airline LCC-Domestic Award, by Travel and Hospitality,( Feb 2012)
  • Awarded for Best Website at ‘World Low Cost Airlines Asia Pacific Conference’, (2010 & 2012)
  • Voted as India’s Best Low Cost Airline for 3 consecutive years by Outlook Traveler (2008, 2010 & 2011)
  • CIO 100 Award in IT efforts for customer satisfaction and business growth category(2007, 2008 ,2009 & 2011)
  • India’s best low-fare airline in a survey conducted by MaRs on behalf of Hindustan Times (Dec 2009)
  • World Travel Market Award for multi-channel approach in distribution (November 2009, London)
  • National Award (ICWAI) for excellence in Cost Management (March 2009)

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