Mallika Dureja
By Reuters: On Friday, troubled low-cost airline SpiceJet Ltd. recorded higher revenue for the third quarter as the company benefited from soaring demand for air travel. As a result, the company’s shares increased by almost 12 percent.
The airline reported that its profit increased to 1.07 billion rupees ($12.93 million) for the three months that ended on December 31. This is a significant increase from the 232.8 million rupees reported for the same period last year, which was negatively impacted by a one-time expense associated with a settlement reached with an aircraft manufacturer.
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The sum of all of SpiceJet’s operational earnings increased by 2.5% to reach 23.15 billion rupees.
The company said in a statement that “despite a large jump in passenger traffic, business continued to be affected by high fuel prices and a depreciating rupee.” This was in reference to the fact that passenger traffic had increased significantly.
According to the company, the significant performance seen in both the passenger and cargo industries has been the primary contributor to the profit.
Ajay Singh, the chairman and managing director of the company, stated that there are renewed indications of recovery, as well as some very positive developments and restructuring initiatives that are in the immediate offing, which would significantly strengthen and deleverage the company’s balance sheet.
