SpiceJet is now profitable

SpiceJet is now profitable

SpiceJet is one of the several budget segment airline companies in the Indian market. The company has now become one of the first domestic low cost carriers to break even.

The company has now reported an operational profit. SpiceJet said in its release that it made a profit of Rs 18.5 crore compared to a loss of Rs 3.4 cores same period last year.

However, this include the funds generated from sale and lease back of two aircraft.

Siddhanta Sharma, the airline’s CEO spoke about their performance: “Our projection is that SpiceJet will break even this fiscal with the sale and lease back of some aircraft. Though we haven’t done away, nor are we going to do away, with cheap tickets that cost up to Rs 100, their percentage is now limited to 10 % of the total tickets. There is a constant focus on cost.”

Sharma added: “We may go to US Exim who funds up to 85 % of cost. For the rest 15% requirement of $ 60-80 million (10 Boeing 737-800 to come between 2009 and 1011, the airline will look at possible options.”

He has also been appointed the executive chairman of SpiceJet.