SpiceJet confident of loads, fares stabilising

Mumbai: SpiceJet, the no-frills carrier, has reported a net profit of Rs 108.9 crore for the quarter ended December 31, 2009 against a loss of Rs 18 crore a year ago. The airline has said it will continue to hedge aviation turbine fuel for 2010-11.
“We are hedged for this (fourth) quarter and will look at doing this in the next fiscal as well. Everything will depend on our business plan and availability of cash. About a fourth to a third is what we follow but it could go up or down depending on how the market moves,” Mr Sanjay Aggarwal, Chief Executive Officer, told Business Line.
SpiceJet's aircraft fuel expenses were down to Rs 208 crore in the third quarter from Rs 227 crore in the same period last year. The carrier started hedging on ATF in 2009 and it has seen a positive cash flow since.
Hedging on ATF is a practice followed by airlines globally, which is basically forward selling and buying of the fuel to improve their bottomline.
On the operations side, the third quarter growth for SpiceJet was driven by a 55 per cent rise in passenger traffic, better aircraft utilisation and a 14 point improvement in passenger load factors. Total income was up 24 per cent to Rs 653 crore (Rs 528 crore).
As for the fourth quarter, Mr Aggarwal said the period includes the traditionally weak travel months of February and March. Despite that, demand would see a year-on-year increase.
22/01/10 hubhra Tandon/Business Line

To Read the News in full at Source, Click the Headline

Categories: spicejet Jan 2010