Boeing Max buyer posts record profit over ‘compensation’

Bloomberg

Indian budget carrier SpiceJet Ltd booked income on the expectation of receiving compensation from Boeing Co 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 scrutinise 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 Chief Financial Officer 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 $37 million for the three months ended in June helped by the collapse of local rival Jet Airways India, which allowed it to raise fares 11 percent. The company’s revenue for the period included a notional income of 1.14 billion rupees on account of costs incurred on aircraft lease rentals.
SpiceJet’s auditors said there’s “no virtual certainty” to recognise such other income, according to the company’s earnings submitted to stock exchanges.