SpiceJet Q3 profit rises 23% on aggressive accounting
MUMBAI: Low fare carrier SpiceJet posted a 23% increase in consolidated net profit for the October-December quarter on income it recognised on expected compensation from plane maker Boeing for grounding its 737 Max planes.
The airline posted a net profit of Rs 78.2 crore up from Rs 63.5 crore a year earlier.
In an instance of what the airline’s finance chief acknowledged as “aggressive accounting” the airline’s net profit was propped up by other income of Rs 270.2 crore, up five times on year. Without the other income, the airline would have posted a loss for the quarter.
The consolidated numbers included earnings from its air transport as well as freighter and logistics segment. SpiceJet’s air transport business posted a net profit of Rs 115 crore, while its freight and logistics business posted a loss of Rs 41.8 crore, pulling down overall net profit.
