Improved
yields, with strict cost control measures, have helped SpiceJet narrow its second quarter losses to Rs
163.5 crore as against Rs 240 crore in the same period last year.
Revenue grew 57 per cent to Rs 1,207 crore
on the back of higher fares and more optimal utilisation of fleet
on high demand revenue generating routes. Revenue per passenger increased 37
per cent. The airline flies 48 planes, including 12 turboprop Bombardier Q400s
and has a market share of 18.5 per cent, behind IndiGo, Jet Airways and Air India.
Fuel
costs, interest and lease rentals increased but an increase in other income (Rs
11 crore) and non-operating income (Rs 28 crore) helped the airline to boost
revenue and contain losses.
"Improved
yields, coupled with effective cost controls, helped the company perform better
in what is always been a weak quarter for the airline business. Increase in
number of international operations and improved fleet management helped us to
deliver better numbers for the quarter. Fuel costs and weakened rupee continue
to be a cause of worry for aviation sector..but we hope to see better days in
the near future,'' said chief executive officer Neil Mills.
On
the net profit level the airline fell short of expectations. ICICI Securities
had estimated the airline to post a modest net loss of Rs 19.6 crore this
quarter on the back of higher revenue and yield improvements. Centre for Asia
Pacific's estimate was closer to the actual. CAPA estimated that the airline to
post losses of $25-28 million (Rs 132crore -Rs 148 crore).
In
its recent research report CAPA had said the losses will increase the funding
challenges for the airline.
http://www.business-standard.com/india/news/spicejet-narrows-net-loss-to-rs-163-cr/492509/
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