Airlines post growth in passenger revenues

New Delhi: The Indian aviation industry has steered out of rough weather, with three listed private airlines — SpiceJet, Jet Airways and Kingfisher Airlines — registering an increase in their passenger revenues.
In the fourth quarter of the last financial year, full-service carriers Jet and Kingfisher registered a growth of 15 and 17 per cent, respectively, while the second-largest low-fare airline, SpiceJet, registered an increase of over 34 per cent in passenger revenues.
The three listed airlines also brought down their losses by over 40 per cent to Rs 2,053 crore. While Jet Airways reported an operating profit, Kingfisher Airlines reduced its operating losses by half. Among the three, Delhi-based SpiceJet, for the first time, made a profit of Rs 61 crore in the last financial year.
Analysts feel the increase in revenues was not the only because of an increase in passenger numbers, but also because of the various schemes floated by the airlines at different intervals.
“The passenger numbers has consistently increased, which has given the airlines scope to experiment with fares and introduce schemes. The introduction of business class in the low-cost inventory by some airlines is a case in point,” said Nikhil Vora, managing director, IDFC-SSKI.
The same has been echoed by the airlines. “With the increase in passenger number, we got the freedom to offer less tickets at lower rates and more on higher rates, hence, bringing us more revenues,” said a senior Jet Executive, who did not wish to be identified.
04/06/10 Mihir Mishra/Business Standard

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Categories: Indian Aviation- In General Jun 2010