SpiceJet net down 13% on high fuel costs

Mumbai: Just when it looked like airlines were flying out of the turbulence zone, budget airline SpiceJet sprung a negative surprise on Thursday by reporting a 13.3% dip in its net profit in the quarter ended December 31 at Rs94.45 crore against Rs108.94 crore in the same period last year.
Analysts said the decline in the net was on account of higher fuel costs and flat yield.
“While we had factored in higher fuel costs, the stagnant yield has come as a negative surprise because December quarter, which is a strongest quarter in a year, always has a higher yield than September quarter,” said an analyst with a domestic broking house, who did not want to be named.
He said the yield derived on the basis of revenue per passenger kilometre (RPKM) in the third quarter was Rs3.45 compared with Rs3.46 in the second quarter.
In fiscal 2010, the yield in the third quarter had moved up to Rs3.50 per RPKM from Rs2.76 in the previous quarter.
Ankur Bhatia, executive director of travel conglomerate Bird Group, said it was difficult to pinpoint a reason for the flat yields.
28/01/11 Praveena Sharma/Daily News & Analysis

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Categories: spicejet Jan 2011