FI­NAN­CIAL PER­FOR­MANCE SPICEJET FY 2017-18

SP's Airbuz - - News Briefs -

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.

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