SpiceJet spins out of the red, posts Rs 22.51-crore net profit in fourth quarter

SpiceJet, the low-cost carrier, announced on Thursday that it has flown out of the red in the January-March period to return to profitability after continuous losses in seven straight quarters.

The airline, which was acquired back by its original co-founder Ajay Singh from the Maran brothers during the quarter, reported a net profit of Rs 22.5 crore in the three-month period as against a net loss of Rs 321.5 crore in Q4 of FY14.

On an EBITDA basis, SpiceJet reported a positive of Rs 80 crore against a negative of Rs 235 crore in the previous fiscal.

The country's fourth largest airline by market share had almost collapsed in December after which Singh stepped in to turn it around. The return to profit came after Spice-Jet benefited from a series of one-off gains, including renegotiating contracts and an insurance claim.

"These results indicate that a recovery is in progress and is the first tangible evidence of the ongoing revival," chairman Singh said in a statement.

Chief operating officer Sanjiv Kapoor said that the airline, having cut its debts and paid most of its outstanding dues, would now look to rebuild the size of its fleet as it tries to win back customers.

"The airline plans to add seven more Boeings to its current fleet of 19 by the end of this year", he added.

"SpiceJet is clearly turning the corner under the new promoter. I firmly believe this is the start of what will be a noted as a historic airline turnaround," Kapoor further added.

The company said it has focussed on restoring operational reliability and winning back customer confidence to boost revenues while negotiating settlements and renegotiating several major contracts to bring down costs.

"The decline in jet fuel prices has also helped the airline to cut operational costs. The airline ended the quarter with a load factor of 81 per cent, which is a historic high for low season, as it continued its strategy of demand stimulation to maximise revenues", the company said.

"The new promoter Ajay Singh has so far infused Rs 650 crore into the carrier," chief financial officer (CFO) Kiran Koteshwar said, whose appointment as the full-time CFO was approved by the Board on Thursday.