Budget carrier SpiceJet has reported a net profit of Rs 102 crore for the third quarter ended December 31, 2012, as against a net loss of Rs 39 crore in the comparable previous year quarter.
The company has attributed this to relatively low fuel cost, fleet optimisation, better route mix and higher yields.
In a regulatory filing, the company said the fuel cost, as a proportion of the total revenue, fell to 45 per cent in the current quarter as against 50 per cent in the comparable previous year period. Notwithstanding this improvement, “which certainly augurs well for the civil aviation sector in the country, the fact remains that the Indian airline industry continues to bear the brunt of extremely high incidence of taxation”, the release says.
According to it, a weighted average tax rate of 24 per cent on aviation turbine fuel prices across various stations in India is among the highest in the world and constitutes the biggest hurdle for domestic carriers’ long-term growth.
The airline company, part of the Chennai-based Sun TV Network group, has posted a 37 per cent growth in income at Rs 1,603 crore from Rs 1,173 crore last year.
The average passenger yields in the quarter went up by 29 per cent compared to the corresponding quarter a year ago. The carrier’s domestic market share in December 2012 increased to 19.20 per cent from 16.80 per cent last year. The number of passengers in the quarter under consideration grew 7 per cent, and the number of departures went up 25 per cent — thanks to better fleet optimisation and route mix. Particularly, the company has reported 80 per cent growth in number of passengers, with 129 per cent growth in number of departures in its international routes.
The average passenger yields went up by 29 per cent to Rs 4,412 from Rs 3,421. The airline currently operates over 330 daily flights to 42 Indian cities and seven international destinations – including Dubai, Colombo, Guangzhou, Kabul and Kathmandu.
ravikumar.ramanujam@thehindu.co.in