Can breakeven in FY09: SpiceJet

Domestic carriers are feeling the heat of spiralling fuel prices. Just a day after Jet Airways put a cost cutting plan in place, low cost airline SpiceJet is set to follow. The airline is still hopeful of breaking even this fiscal.
Skyrocketing jet fuel prices may ground the plans of airlines the world over. After Jet, low cost airline SpiceJet is putting a cost cutting plan in place. The airline has already passed on the cost increase to consumers as fuel surcharge, which has led to a 5-7% drop in passenger load in comparison to last year.
Yields, though, are up by almost 35-40%. Despite the crude shock, SpiceJet hopes to breakeven this fiscal, if crude prices remains at current levels. In the first nine months of FY08, SpiceJet posted losses of nearly Rs 10 crore.
08/05/08 Swati Khandelwal/CNBC-TV18/Money Control.com

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Categories: SpiceJet May 2008