Shares in SpiceJet rally 9 percent on good quarterly results

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Shares in SpiceJet rally 9 percent on good quarterly results
Spicejet: Quotes, News
BSE 67.00BSE Quote0.55 (0.82%)
Shares in SpiceJet jumped 9 per cent in trade at Rs 13.05, up 9 per cent over Friday's close on the Bombay Stock Exchange.

The shares were up after the company managed to cut its losses for the quarter ending June 30, 2014. SpiceJet managed to show an operating profit of Rs 9 crores, which went down well with the markets. The airline also managed to delivers highest ever RASK (unit revenue) for the months of May and June, driven by high load, improved yield, and growth in ancillary revenue.

It also emerges as the #2 airline in India in terms of domestic passenger share in June despite network rationalization that reduced capacity by 8.4% in the quarter.

"On a year-over-year basis, topline revenue for the quarter held steady despite 8.4% reduction in capacity (ASKs) after reduction of five aircraft from fleet (two scheduled, four early returns as part of network rationalization; one new aircraft was also added to the fleet in May); load factor up 2.4%," the company stated in a release.

During the quarter, SpiceJet also incurred restructuring and certain one-off costs consisting of Rs 133 cr relating to restructuring of the network and fleet.

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