Low-cost airline SpiceJet has reported a net profit of ₹56.3 crore for the fourth quarter ended March 31 this year, a 21.9 per cent increase over the ₹46.2-crore profit posted in the same period the previous year.

The company reported an operating revenue of ₹2,531.3 crore for the latest quarter, while on the EBITDAR or earning before interest, taxes, depreciation , amortisation and rent/restructuring basis, it reported a profit of ₹523.3 crore.

A statement issued by the airline said that it managed an increase in profitability despite challenges of seasonality and grounding of 13 Boeing 737 MAX aircraft.

It added that the latest quarterly profits do not include any form of reimbursements or compensations for the grounded aircraft for which the airline continues to work with the manufacturer.

The airline said that this could have led to huge cancellations and passenger disruptions but it was able to operate additional frequencies and induct more planes on wet lease. It also rationalised and optimised the use of its existing fleet.

The statement quotes the airline’s Chairman and Managing Director Ajay as saying that that the airline has posted a strong recovery in the last two quarters after suffering a loss of ₹427.5 crore in the first two quarters due to a steep increase in fuel costs and the sudden depreciation of the rupee.

However, SpiceJet reported a net loss of ₹316.1crore for the full year. The airline had reported a net profit of ₹566.6 crore in the previous year.

The airline has said that the year under review presented multiple unprecedented challenges, including a 25 per cent increase in the price of aviation turbine fuel (ATF), which resulted in a cost escalation of ₹695 crore, and a 9 per cent depreciation of the rupee that resulted in overall cost escalation of ₹285 crore..

SpiceJet is confident of a strong performance in fiscal 2020 given the planned expansion of the fleet, a favourable operating environment, a likely return of the Boeing 737 aircraft in July, significant improvements in yields and prime slots at key airports.

Expansion plan

The statement adds that the airline is eyeing an aggressive expansion plan across both its domestic and international networks.