Airlines board profit flight

New Delhi: Jet Airways and SpiceJet Ltd have posted unexpected first-quarter profits against losses in the year-ago period on the back of gains from an appreciating rupee against the dollar.
Total income of Jet Airways rose nearly 20 per cent to Rs 1,983.03 crore in the quarter ended June 30 from Rs 1,655.19 crore in the year-ago period, the company has informed the Bombay Stock Exchange. Net income for the quarter ended June 30 was Rs 30.8 crore compared with a loss of Rs 44.98 crore a year ago. Jet Airways, which bought Sahara Airlines Ltd earlier this year, had a foreign currency gain of $31 million in the first quarter.
SpiceJet has also turned around with a net profit of Rs 18.5 crore for the first quarter ended June 30 against a loss of Rs 3.68 crore during April-June 2006.
SpiceJet chairman Siddhanta Sharma said the low-cost airline gained Rs 20.6 crore from foreign exchange fluctuations and another Rs 12.7 crore as profit from aircraft sales. The company has reported an income of Rs 265 crore and operating expenses of Rs 246 crore.
Sudipto Bose, an aviation industry analyst, said fuel prices and continued competition could keep the domestic airline industry under price pressure for some more time.
Analysts feel there will be an eventual shakeout in the market and four to five big players will emerge in the domestic aviation market, instead of the current medley of multiple players.
31/07/07 The Telegraph

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Categories: Jet Airways Jul 2007, SpiceJet Jul 2007