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SpiceJet declares a second successive annual profit

PAT for FY '10-11 up 65% to Rs. 101.2 crores
New Delhi, May 27, 2011

SpiceJet, India's most preferred low-cost carrier, continued to outperform the industry by announcing a second straight year of profitable operations. SpiceJet declared an annual profit of Rs. 101.2 crores during FY 2010-11 against a profit of Rs. 61.5 crores during the previous financial year.

Reflecting the robust growth in domestic passenger traffic, SpiceJet, in FY 2010-11, saw a 30% increase in traffic whereas the total domestic air traffic increased only by 19%. This clearly indicates customer preference for the reliability and value proposition offered by SpiceJet. The quarterly load factors touched 80% during the Jan-Mar '11 quarter and the airline closed the year with a domestic market-share of 13.6%.

This profit growth is despite a significant rise in fuel costs and a very challenging pricing environment in the Jan-Mar quarter.

Highlights for the year ended March 31, 2011

1.Operational
  • 30% Growth in number of passengers.
  • 19% Growth of Available Seat Kilometers.
  • 490 basis point improvement in load factor.
2.Financial
  • 33% increase in Operating Revenue.
  • 0.5% reduction in Cost (ex-fuel) per Available Seat Kilometer.
  • 26% increase in Fuel cost per Available Seat Kilometer.
  • EBIDTA margin nearly doubled from 2.2% to 3.9%.
  • PAT of Rs 101.2 crores versus Rs. 61.5 crores during the previous year – up 65%.
  • PBT of Rs. 125.9 crores vs. Rs. 67.8 crores during the previous year – up 86%.
  • Net Profit margin up 70 basis points to 3.4%

Highlights for the quarter ended March 31, 2011

1.Operational
  • 41% Growth in number of passengers.
  • 36% Growth of Available Seat Kilometers.
  • 110 basis point improvement in load factor.

SpiceJet's market share increased to 13.3% in FY 10-11 as compared to 12.3% during FY'09-10. Domestic traffic during the year grew by 19% - significantly ahead of the industry forecast. SpiceJet expects the demand scenario to continue to remain robust and expects a 14-16% domestic demand growth during FY'11-12.
SpiceJet reached several important milestones during FY '10-11. One of the most significant achievements was the successful completion of five years of domestic operation in May 2010, making it eligible to fly on international routes. The airline commenced its flights to Kathmandu and Colombo in October 2010. On the domestic front, SpiceJet added two new destinations – Agartala and Madurai - on their network.

Neil Mills, Chief Executive Officer of SpiceJet said, "We are very pleased that we have continued to grow and remain profitable despite the challenges such as escalating ATF prices and significant yield pressures during the Jan-Mar quarter. Our robust business model and focus on operational efficiencies has been instrumental in ensuring that we continue to outpace the industry. We are now in a phase of rapid expansion and are looking at an aggressive addition to our fleet in the next few years. The most interesting development will be the start of our Q400 turbo-prop operations which is currently planned for the month of July and we are confident that this will take us to the next level of growth."
In line with the SpiceJet Chairman, Mr. Kalanithi Maran's, vision of strengthening domestic connectivity to Tier 2 and Tier 3 towns, SpiceJet announced their order of 30 Q400 NextGen turboprop aircraft from Bombardier Inc. of Canada in Sep '10. Hyderabad's Rajiv Gandhi International Airport (RGIA) will be the first base for SpiceJet's turbo-prop operations and that are expected to begin in July 2011.
SpiceJet plans to add 7 Boeing 737 aircraft during this year, to its operational fleet of 25 aircraft, to capitalize on the expected domestic demand growth. SpiceJet also plans to scale up its international operations by commencing services to destinations in South Asia and the Middle-East. The airline plans to have around 70 aircraft in its fleet by 2013 including the Q400 Bombardier aircraft.

About SpiceJet Ltd.:
SpiceJet (www.spicejet.com) is India's most preferred airline, with more than 13% market share, delivering the lowest air fares with the highest consumer value. We operate 192 flights daily to 21 Indian cities viz. Agartala, Ahmedabad, Bangalore, Bagdogra, Chennai, Coimbatore, Delhi, Guwahati, Goa, Hyderabad, Jammu, Jaipur, Kochi, Kolkata, Madurai, Mumbai, Pune, Srinagar, Varanasi Visakhapatnam and Nagpur. On the international front, SpiceJet operates flights to Kathmandu and Colombo. SpiceJet's new generation fleet of 29 Boeing 737-800 / 737-900ER aircraft are backed by cutting edge technology and infrastructure to ensure the highest standards in safety and operating efficiency.

SpiceJet is the winner of:-
  • Outlook Traveler’s Best Low Cost Airline (Feb 2008 & Feb 2010)
  • Award for Best Website at 'World Low Cost Airlines Asia Pacific Conference' (January 2010 & January 2011, Singapore)
  • India's best low-fare airline in a survey conducted by MaRs on behalf of Hindustan Times (December 2009)
  • Employer Branding Institutes Best Employer Brand Award for our employee best practices (December 2009)
  • World Travel Market Award for multi-channel approach in distribution (November 2009, London)
  • Smart Travel Asia's Top 10 Best Budget Airlines in Asia for two consecutive years (Aug 2008 & Sept 2009, Hong Kong)
  • National Award (ICWAI) for excellence in Cost Management (March 2009)
  • CIO 100 Award for IT efforts for customer satisfaction and business growth (2007, 2008, 2009 & 2011)
  • Frost & Sullivan Indian Commercial Aviation Emerging Company of the Year Award (Nov 2008, London)

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