SpiceJet: Flying high

Low-cost carrier SpiceJet’s recent September quarter revenue grew 30 per cent y-o-y to ₹1,797 crore while its profit increased nearly 80 per cent to ₹105 crore; this was a record second quarter profit. The strong show in a seasonally weak quarter was thanks to high load factor (93 per cent), better passenger yields (7 per cent higher y-o-y), and strong passenger traffic growth in the domestic market (31 per cent y-o-y). The airline’s domestic market share improved to 13.8 per cent in the September quarter from 12.5 per cent in the year-ago period. On its international routes too, traffic growth was a healthy 17 per cent y-o-y. With revenue growing faster than costs, SpiceJet’s operating margin (EBITDA) improved to 10 per cent from 9 per cent in the year-ago period, while net margin increased to 6 per cent from 4 per cent.

During the quarter, the airline introduced its fourth daily flight under the regional connectivity scheme UDAN.

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