Monday, June 26, 2017

Increase in price of 11 routes may boost profits of SpiceJet, IndiGo in Q1

Increasing fares on just 11 domestic routes in India may have been enough for airlines like IndiGo and SpiceJet to post a more profitable first quarter of current fiscal year.

The first quarter of this financial year FY18 will end on June 30, which is just four days away and companies will start posting revenue and financial results after that.

“Our one-month forward fare tracker for 11 routes shows an upward trend in fares over a seasonally strong 1Q. We believe yields for airlines (IndiGo and SpiceJet) would improve QoQ in 1QFY18,” Motilal Oswal analysts - Swarnendu Bhushan and Abhinil Dahiwale said on June 21.
However, after a disappointing first quarter, SpiceJet and IndiGo had increased prices of flight tickets.

If you’re wondering what happened to all those summer sales by airlines that you read about, well they still applied on select routes. And if you read the fine print the charges were most likely base fares barring fuel and surcharges.

Also Read: How a three day flight ticket sale by Jet Airways, Spicejet, IndiGo help

Flight tickets have shown an uptick in prices from the period March to June on 11 routes, the report added.
26/06/17 ZeeBiz