SpiceJet reports decline in Dec-2010 quarter profitability; yields remain stable

SpiceJet reported a decline in 3QFY2010 profitability due to higher fuel costs and taxes, with net profit declining 13.3% year-on-year to USD20.7 million. Operating profit, however, increased 10% to USD24.5 million. The carrier's CEO Neil Mills commented that the carrier is "pleased" that yields in the market remained stable despite an 11% increase in domestic seat capacity, adding: "We remain optimistic about the growth in domestic passenger traffic during the next 12-18 months and expect the industry will grow in the 14-16% range". The Delhi-based carrier has declared a profit for the last five successive quarters.