Wednesday , May 18 2022

SpiceJet Shares: SpiceJet Announces Highest Q1 Profit at Rs 262 Crown



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The grounding of Jet Airways has helped the aviation industry improve its financial performance, with SpiceJet reporting the highest net profit of 261.7 kroner in the first quarter of the current fiscal against a loss of 38.1 kroner for the same period last year.

The airline said its total revenue rose to 3,145.3 kronor for the quarter ended June 2019, compared to 2,253.3 kronor for the corresponding quarter last year.

The company said operating revenue was 3,002.1 kronor, compared to 2,220.4 kroner for the corresponding quarter last year. EBITDA-based profit amounted to 747.5 kronor, compared to 100.5 kronor for the corresponding quarter last year. Operating expenses amounted to 2 883.6 kronor compared to 2227.9 kronor for the corresponding period last year.

The airline also said that the best performance is despite the fact that the airline has already transitioned to new accounting standards that affect financial numbers.

"Effective April 1, 2019, the airline has adopted the new accounting standard, IND AS 116, which effectively capitalizes on operating leases and as a result of this lease is now recognized as interest and amortization for the quarter ending June 2019. In addition, due to retrospective treatment of this standard has reduced by 302.2 runes of retained earnings status as of April 1, 2019, "the company said.

The airline credits these numbers for its ability to deliver capacity, influenced by the grounding of the Boeing 737 MAX, by adding Jet Airways planes.

"SpiceJet is a grand development, and this neighborhood in particular is very special to us. We have added 32 aircraft to our fleet, expanding at an unprecedented pace for a crisis-stricken sector, demonstrating our sound business model and proven operational capabilities. We are fortunate to be able to reduce passenger inconvenience by quickly filling the capacity gap in India's aviation sector. The results would be much better, but for the painful grounding of the MAX aircraft. We look forward to their quick return to service in the near future, which will help SpiceJet increase its margins and provide an excellent level of service. Ajay Singh, chairman and managing director, SpiceJet, was quoted in the announcement.

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