SpiceJet posts 22% jump in fourth-quarter profit, sees strong year ahead

Budget airlineSpiceJetLtd posted a 22% jump in fourth-quarter profit on Tuesday, as it flew more customers and was able to raise prices at a time when the industry benefited from the collapse of Jet Airways.

Indian carriers, including budget airlinesSpiceJetand Interglobe Aviation Ltd's IndiGo, have been taking advantage of debt-laden Jet's downfall, adding flights and routes and raising fares in response to a drop in capacity.

"(With) significant improvements in yields and prime slots at key airports, we are confident of a strong performance for FY2020," Chairman and Managing Director Ajay Singh said in a statement.

Add WION as a Preferred Source

SpiceJetsaid it added 25 aircraft in April and May. Jet started grounding planes at the beginning of the year and was eventually forced to stop operations in April. On Tuesday,SpiceJetsaid it would add 35 aircraft to its fleet by fiscal 2020 and that average fare rose 11% and capacity increased 21% in the reported quarter.

Standalone net profit, excluding earnings of unitsSpiceJetMerchandise,SpiceJetTechnic and Canvin Real Estate, reached 562.9 million rupees ($8.08 million) in January-March, from 461.5 million rupees in the same period a year earlier.