SpiceJet reports second successive annual profit; losses in 4Q on yield pressure and fuel
SpiceJet reported a 64.6% jump in net profit for the 2010/11 financial year as higher load factors and an improvement in air traffic demand outweighed a steep rise in fuel costs and “significant” yield pressures. Net profit for the 12 months to Mar-2011 increased to INR1.01 billion (USD22.4 million) as revenues increased 33.2% to INR28.80 billion (USD649.6 million) with the result marking the carrier’s second consecutive annual profit. The carrier’s profit margin increased to around 3.5% in the year. [1366 words]
Unlock the following content in this report:
- SpiceJet profitable again in FY2011
- Net loss in 4Q2011, result not as expected: CEO
- Lack of pricing discipline a concern together with high fuel prices
- Load factors above 80%; 30% passenger growth in domestic market
- Considers expansion and financial requirements in FY2012. SpiceJet financing efforts to be 'challenging'
- Focus on tight cost control and yield improvements
Graphs and data:
- SpiceJet operating profit margin and net profit margin: FY2010 vs FY2011
- SpiceJet destination map: May-2011
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