SpiceJet surprised all with Rs 71 cr net in Q1, cost cutting helped

Budget airline SpiceJet Ltd reported on Tuesday a net profit of  Rs 71.80 crore or Rs 718 million ($11.2 million) for the three months ending June, after cutting costs and flying more passengers.

SpiceJet made a net loss of Rs 124 crore or 1.24 billion in the same quarter a year earlier. India's second biggest budget carrier by market share, which last quarter made its first profit since 2013, is in the midst of a recovery plan after it almost collapsed late last year.

Under new Chairman Ajay Singh, the airline has cut routes - its capacity is down a third since last year - and costs.

It said on Tuesday that its load factor - the per centage of an airline's carrying capacity it has filled - rose to 89.8 per cent in the quarter, a rise of almost 15 per cent from last year.

Sustained profitability has eluded most of India's airlines for the last few years amid fierce competition for fares and high operating costs, despite the country's aviation market growing at one of the fastest rates worldwide.

SpiceJet shares jumped after news of the results, ending up 7.4 per cent as the wider market fell 0.4 per cent.