FINANCIAL PERFORMANCE SPICEJET FY 2017-18
SpiceJet’s results for the first quarter of fiscal year 2017-18 were a mixed bag with some areas of concern. SpiceJet’s revenues grew by 23 per cent against a capacity increase of 18 per cent compared to the same quarter last fiscal year. This was driven by a combination of rising fares and load factors. SpiceJet continued to be very aggressive in sales during the quarter reflected in the high load factors recorded. SpiceJet is no different and increased the average fare per passenger by nine per cent to 3,943. India’s largest domestic carrier, IndiGo, averaged 4,626 per passenger. Load factors were a healthy 93.4 per cent. Total costs as compared to the same period last year grew by 23 per cent, outstripping capacity growth of 18 per cent. This naturally reflects on profitability. SpiceJet was consistently ranked second in on-time performance, a key influencer for the Indian passenger. Interestingly no mention was made of this in the results. Aircraft utilisation was fairly low at approximately nine hours per aircraft averaged between the Bombardier Q400 and Boeing 737 fleets. We estimate the utilisation of the Boeing 737 will be higher at around 10 to 11 hours. Expect the airline to increase utilisation to drive revenues.