Indian budget airline company SpiceJet reported a net profit of 43 million rupees (US$964,000) from December to February, against a net loss in the previous quarter, Indo-Asian News Service reported Wednesday.

The airline had suffered net loss of 213.6 million rupees (US$4.8 million) from September to November last year.

In the last quarter its sales totaled 1.3 billion rupees (US$30.23 million), up over 815.3 million rupees (US$18.96 million) in the previous quarter.

The airline's operating profit improved to 96.7 million rupees (US$2.25 million) as well, up from a loss of 244.8 million rupees (US$5.69 million) in the previous quarter.

SpiceJet released the performance report when rumors said that it is hunting in the market for funds to secure its position.

Reports have suggested SpiceJet plans to sell some aircraft to raise money to implement its growth plans.

According to sources, the airline has already sold off one of its aircraft to a foreign firm and redeployed the same one on lease.

Company sources defended the strategy, saying it had been adopted to secure the airline's financial status and to go ahead with growth and expansion plans. It planned to adopt a similar strategy using three more of its aircraft, they said.

In the past year, SpiceJet placed orders worth nearly US$2 billion to buy 30 Boeing jets. While it has raised around US$70 million through foreign currency convertible bonds (FCCBs), it has been studying other options to fund the purchase.

(Xinhua News Agency March 30, 2006)