Fuelled by higher fares, SpiceJet posts Rs 56.3 cr Q4 profit

SpiceJet Tuesday posted a 22 per cent rise in net profit at Rs 56.3 crore in the three months ended March as higher fares helped the airline amid a capacity crunch in the domestic aviation market.

The no-frills carrier, which now has 100 planes in its fleet, had a net profit of Rs 46.2 crore in the March quarter of 2018.

During the three months ended March 2019, average fare went up by 11 per cent, the airline said. It expects the ticket prices to remain higher till December.

The Jet Airways had resulted in lower seat capacity and also pushed air ticket prices higher starting from March quarter.

SpiceJet is the second domestic carrier to post a profit after IndiGo in as many days.

SpiceJet Chairman and Managing Director Ajay Singh said the airline has seen a strong recovery in the last two quarters after suffering a loss of Rs 427.5 crore in the first two quarters due to a steep increase in fuel costs and sudden depreciation of the rupee.

"This recovery comes despite the unprecedented