Wednesday, May 29, 2013

Why IndiGo was the only profitable airline in FY13

IndiGo again surged ahead of its peers and not only remained the only airline in India to declare a positive net income but increased it four fold in 2012-13 over the previous fiscal. According to a report by the Centre for Asia Pacific Aviation (CAPA), IndiGo closed the last fiscal with net income of $100-110 million against $23 million in FY12.
Every other listed and unlisted airline in India posted losses, though those losses were smaller for each airline compared to FY12. The least loss-making airline was the smallest, GoAir at $14-16 million, followed by SpiceJet at $34 million and Jet Konnect at $53 million. Air India’s negative net income was the largest at $950 million while Jet Airways was at $87 million in FY13. Kingfisher was at $500-520 million.
So why did airlines continue to remain the red, except IndiGo? CAPA says things were fine for the first nine months of FY13 but the January-March quarter spoiled the party. Airlines together generated losses of approximately $700 million in the last quarter alone.
29/05/13 Sindhu Bhattacharya/First Post