The Delhi-based low-cost airline SpiceJet has reported a net profit of ?73 crore for the fourth quarter of fiscal 2016, after taking a one-time expense of ?173 crore towards stabilising and improving the reliability of the fleet. This is the fifth profitable quarter in a row that the airline has reported a profit.
“We have taken the expense to clean up and overhaul the fleet. A majority of the funds will go towards overhaul of engines and upgrade of fleet. It also provides for all claims. With this we hope that the past does not come back to haunt us,” Ajay Singh, Chairman and Managing Director, told newspersons after the results were announced.
After this one-time expense, the airline will only have three outstanding claims of about $60 million of which at least two are in the process of being settled involving $30 million. The results are for the first full year that Singh has been at the helm of the then financially-strapped airline. He claims that the company’s networth has significantly improved to a negative networth of ?600 crore from a negative networth of ?1,300 crore.
SpiceJet has reported a net profit of ?407 crore for the fiscal year 2016. The airline had reported a loss of ?687 crore in fiscal 2015 registering a positive change of ?1,094 crore.
It reported an operating revenue of ?1,475 crore in the current quarter, a growth of 86 per cent over the same period in the last quarter. On an EBITDA basis, it reported a profit of ?146 crore against ?80 crore profit in the same quarter of last year. Timo Meier Authentic JerseyShare This