Airlines will leave reddish streaks in the skies

Bangalore: Looks like profits will elude the carriers this year also.
SpiceJet’s results for the third-quarter ended February 28, 2007, makes you feel just that, because soaring aiation turbine fuel (ATF) prices have been dragging the engines.
The budget carrier’s net loss has shot up 395.34% to Rs 21.37 crore in the third quarter of this fiscal from Rs 4.30 crore during the same period last year.
Since February, ATF prices have risen by about 6.37% from Rs 33,982.95 per kilolitre to Rs 36,149.04 in April (in Delhi).
Even though this will impact their yields, airlines will not pass on the impact of rise to the consumers as yet.
They will be adjusting the impact of the current hike against gains from the drop in ATF prices during October, November, December and February.
These negative forecasts notwithstanding, budget carrier Air Deccan managing director Capt G R Gopinath, as always, remained positive.
02/04/07 Praveena Sharma/Daily News & Analysis

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Categories: General Aviation Apr 2007