Airlines may turn in profits on improved passenger volumes

Mumbai/New Delhi: After several quarters of flying through turbulent weather, India’s listed airline companies are expected to report profits for the quarter ended December as more passengers took to the skies.
Four analysts and consultants interviewed by Mint expected low-fare carrier SpiceJet Ltd to post a quarterly net profit of at least Rs80 crore and Jet Airways (India) Ltd to post a small profit of at least Rs10 crore. Kingfisher Airlines Ltd, the third listed carrier, is likely to make an operating profit in the December quarter.
Airline revenues have been buoyed by an increase in passenger volumes as the Indian economy rebounded from the slowdown of early 2009 and lower fuel prices allowed carriers to roll back some of the price hikes that scared off fliers in 2008.
The Directorate General of Civil Aviation, India’s airline regulator, said on Wednesday that the country’s domestic airline passenger market expanded 7.5% in 2009 compared with 2008, a year when passenger numbers slumped. Nearly 3.07 million additional passengers took to air travel in 2009, taking the total number of passengers carried to 43.84 million—up from 40.77 million in 2008 and 42.85 million in 2007.
13/01/10 P.R. Sanjai and Tarun Shukla/Live Mint

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Categories: Indian Aviation- In General Jan 2010