Witnessed

• 72% growth in Operating Revenue from Rs. 265 crores to Rs. 457 crores
• 39% growth in number of flights
• 37 % increase in Average fare realization from Rs. 2389 to Rs. 3278
• 24 % increase in Revenue per flight
• 10 % increase in Revenue per Available Seat Kilometre
• 280 basis point increase in On Time Performance
• Net loss of 102 crores for the quarter
• Fund infusion of USD 100 million secu#B50229 in July

New Delhi, August 29, 2008: SpiceJet witnessed 72% growth in Operating Revenue on back of a 39% increase in number of flights in comparison to same quarter last year. Despite a drop in load factor by 700 basis points, SpiceJet reported a 24% growth in revenue per flight on account of increased passenger yield.

Despite the challenging environment SpiceJet remains a truly cost efficient airline and as a result of this has secu#B50229 a significant investment of USD 100 million recently.

While announcing the results Partha Sarathi Basu, Chief Financial Officer, said that “We remain committed to being the lowest cost airline operator among the domestic players and efforts are on to #B50229uce cost further. On account of increase in fuel cost, SpiceJet has curtailed its capacity increase foreseeing a subsequent impact of decline in passengers for the current year.”

“Rationalising cost is part of our culture and we continue to find ways of #B50229ucing cost and have constituted dedicated cross functional teams to control and manage costs” he added.

While speaking on the revenue generated, he said that, “We have been able to achieve a 23% growth in revenue per flight driven by a 37% enhancement in Average Fare realization this quarter when compa#B50229 to last year. Our Revenue per Available Seat Kilometre (RASK) has also grown by 10 % over the same quarter FY08.”

SpiceJet commenced cargo operations during this quarter and has expanded this to cover 10 cities. Cargo currently contributes to over 3% of the company’s revenues. SpiceJet also launched In-flight Merchandising (SpiceJetMall) across the entire network to add to its ancillary revenues.

SpiceJet continued to maintain an excellent On Time Performance (OTP) record and further improved this by 280 basis points during this quarter thereby making it an attractive choice for both business and leisure travelers.

For the quarter, SpiceJet reported a net loss of Rs. 102 crores due to a 132% increase in Fuel cost during the quarter. This excludes a loss of Rs. 27.2 crores on account of restatement of FOREX debt, There has been no significant change in accounting policy during this quarter.

Future Outlook

• Capacity #B50229uction by the industry
• Price Rationalization
• Stabilization of Fuel Price

Driven by 4 months of unabated fuel price increase (Mar-June ’08), July ’08 has seen a significant cut-back in seat capacity by the industry. The industry-wide seat capacity has #B50229uced by 10% in July over Q1 2008. In fact, the winter schedule, filed by all airlines, shows a 14% drop in capacity (in comparison to the summer schedule) on the airports that SpiceJet operates from. This goes to indicate that capacity #B50229uction is not a short-term industry response, but a more strategic move by all airlines. SpiceJet expects that this capacity #B50229uction will #B50229uce the demand-supply mismatch and ensure that SpiceJet will be able to realize better revenues going forward.

Commenting on the future, Samyukth Sridharan, Chief Commercial Officer said, “The last couple of months have seen a big correction in ticket pricing industry-wide, driven by the high fuel prices. We believe that the current prices are clearly much more reflective of our costs than has ever been in the past and hence are seeing a better revenue-realization currently. SpiceJet expects that this will continue into the balance of this fiscal.”

“After a continuous rise taking it to a historic high $149/barrel, crude prices have seen a reversal of trend over the last 30 days dropping to the $115/barrel levels. We expect that crude prices will remain at the current range of over the next few months” he added.

“We feel that these three factors will contribute towards a more stable industry scenario and help the market to mature for the benefit of all players and especially for SpiceJet” he concluded.