Key Boeing Max buyer posts record profit on compensation hope

SpiceJet booked income on the expectation of receiving compensation from Boeing for grounded 737 Max jets, posting its highest-ever profit in the process. Airlines around the world have sought compensation from Boeing for order delays and losses caused by the grounding of the 737 Max in the wake of two deadly crashes. There’s no clarity on when those jets could fly again as regulators scrutinize corrective measures. Chinese airlines have said they may have lost more than $500 million due to the groundings. “This aircraft has been grounded for no fault of SpiceJet. We are paying for expenses for the aircraft,” SpiceJet’s CFO Kiran Koteshwar said. “These are the rentals which we have incurred between April, May and June, and we have sent this and other numbers to Boeing. We are very sure this is the minimum we will get.” SpiceJet posted a profit of 2.6bi rupees ($37m) for the three months ended June helped by the collapse of local rival Jet Airways India, which allowed it to raise fares 11%. The company’s revenue for the period included a notional income of 1.14b rupees on account of costs incurred on aircraft lease rentals.<br/>