SpiceJet April-June net profit down 10 per cent to Rs 50.55 crore

MUMBAI: Kalanithi Maran-controlled SpiceJet on Monday reported a 10% decline in net profit at 50.55 crore for the three months ended June 30, 2013, a period generally considered to be among the better months for the domestic aviation industry. The company said higher fuel prices and a declining rupee continued to "exert pressure" on margins.

The low-cost carrier had registered a net profit of 56.15 crore in the year-ago period.

Total income from operations for the quarter, however, increased 16% to 1,704.3 crore from 1,466.7 crore. "Notwithstanding the several headwinds, in the form of a weak rupee and high cost of fuel, the management has executed with an emphasis on efficiency, elimination of waste and profitability," the airline said in a statement.

The airline board also accepted the resignation of Neil Mills, the CEO who has been at the helm and had crafted the strategy ever since Maran acquired the airline in 2010. "The overall performance should be considered satisfactory and has to be viewed in the context of several adverse circumstances that continue to make the business environment for the airline industry extremely challenging," the airline said.