SpiceJet returns to profits in Q1, stock up 16%

After five straight quarterly losses, low fare carrier SpiceJet has posted a Rs 56 crore profit for the June quarter. The stellar performance of the company can, well be attributed to higher passenger load factors and atleast 24% growth in revenues per passenger. Had the Rupee not appreciared against the dollar, the carrier would have posted better results,  said SpiceJet in a press statement.

Meanwhile, sales of the company rose 51% to Rs 1,407 year-on-year as the company improved its markets share in terms of passengers carried.The share price of the company was quick to respond to the good performance of the company and rose almost 16% to Rs 29.35.

Neil Mills, CEO of Spicejet says: “While we expand our footprint in domestic as well as international sectors, the excessive taxation on aviation fuel in India and the weakening of Indian Rupee against the US dollar are matters of serious concern. The sharp increase in airport charges and other pass- through levies in various forms are increasing the cost of air travel to our passengers, without bringing any additional revenue to the airlines." He further said that the need of the hour is that the government should intervene proactively and launch initiatives urgently to improve the health of Indian civil aviation.