Break-even not before 2009-10 due to high fuel prices: SpiceJet

New Delhi: Low-cost carrier SpiceJet Ltd does not expect to break-even before 2009-10, with soaring jet fuel prices and slowing traffic growth delivering a double whammy, its chief financial officer said on Tuesday.
Partha Sarathi Basu also said the carrier could raise passenger fares if aviation turbine fuel (ATF) prices rose more than 4-5% in a month.
ATF prices, as offered to domestic airlines, rose 56% in a year to May in Mumbai and New Delhi, data from Indian Oil Corp. Ltd showed.
Benchmark Asian jet fuel prices rose 61% to $129.16 (Rs5,541 today) a barrel in the year to March 2008, against a rise of less than 1% in the prior 12 months. With crude prices at record highs, ATF prices are not likely to come down.
27/05/08 Rakesh Sharma/Reuters/Livemint

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Categories: SpiceJet May 2008