Higher passenger yields for Indian low-cost carrier SpiceJet in its third quarter only partially offset higher crude oil prices and foreign-exchange losses that resulted in a sharp drop in profit.
Though profit plunged by 77 per cent after a 34 per cent jump in oil prices and 11 per cent depreciation of the rupee against the dollar sent, shares in the company closed 2.4 per cent up on the 8 per cent increase in passenger yields - a measure of fares and distance flown - and hopes of more stable crude prices.
The airline’s standalone net profit, which excludes results of its SpiceJet Merchandise and SpiceJet Technic businesses, fell to 550.7 million rupees ($7.74 million) for the last three months of 2018 from 2.4 billion rupees a year earlier, the airline said.
SpiceJet, India’s fourth-largest airline by market share, and rival IndiGo are seeing signs of recovery in an intensely competitive market in which profitability has been squeezed further by an intense price war.
IndiGo, owned by InterGlobe Aviation, last month reported a 3.7 per cent rise in passenger yield for the same quarter.
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