Surge in passenger numbers to help airlines cut losses

New Delhi: Airlines in the country are expected to cut down their losses in the third quarter of this financial year, thanks to a consistent increase in passenger numbers and the consequent surge in yields.
The passenger numbers in the third quarter were up by over 25 per cent compared to the same quarter last year. The passenger numbers rose by 26 per cent in October, 30 per cent in November and are set to rise by around 30 per cent in December, according to industry estimates.
“With the rise in passenger numbers, our bad times seem to be getting over. As yields are directly proportional to passenger numbers, our yields are up by 25 per cent and we are set to see good quarterly figures,” said Paramount Airways Managing Director M Thiagarajan.
The airlines have also been successful in bringing down their costs by 12 per cent.
The aviation turbine fuel price, which constitutes 40 per cent of an airline’s operational cost, is also less than it was in the same quarter last year.
The three listed airlines in India made an accumulated loss of Rs 860 crore in the third quarter of the last financial year. Kingfisher Airlines losses were at Rs 626 crore, Jet was at Rs 214 crore and SpiceJet incurred a loss of Rs 17.96 crore. Annual losses of these airlines in 2008-09 were at Rs 3,000 crore.
11/01/10 Mihir Mishra/Business Standard

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Categories: Indian Aviation- In General Jan 2010