SpiceJet posts Q4 profit on loan settlement gains

Indian budget carrier SpiceJet Ltd. reported a six-fold jump in fiscal fourth-quarter profit after it settled borrowings worth $90.8 million from Canada’s export development agency at a discount. Net income was 1.19b rupees ($14.1m) in the three months ended March 31, compared with 169m rupees a year earlier, it said Monday. The airline reported delayed results for the third and fourth quarters of the financial year ended March 31. Companies in India are typically reporting results for the three months through June. SpiceJet didn’t respond to an email seeking an explanation for the delay. Revenue fell 23% to 15.7b rupees, while total costs fell 10%. The company recognized a gain of 5.7b rupees after it settled borrowings from Export Development Canada for a lower amount. The earnings come as a boost for the distressed airline, which is trying to bolster its balance sheet by cutting costs and protect its share in India’s highly competitive aviation market. The firm slashed jobs, settled disputes worth over $50m and raised about $45m in fresh capital during the quarter. It also leased 10 new planes to increase capacity ahead of the peak summer travel season. “We are exploring opportunities to raise fresh funds to further bolster our growth plans and take advantage of the burgeoning demand in the Indian aviation market,” Chairman Ajay Singh said. The low-cost carrier had a 5.4% share of India’s air travel market in the quarter, down from 6.9% a year earlier, according to data from the nation’s aviation regulator. <br/>