Monday, August 20, 2018

SpiceJet Bucks The Trend In A Tough Quarter For Airlines

SpiceJet Ltd. reported a quarterly loss but the budget carrier surprised analysts with higher average ticket prices. That came when competition kept airfares in check despite rising fuel prices.

The budget carrier’s focus is on profits, Co-Founder Ajay Singh said to BloombergQuint in a phone interview. “I believe in minimising senseless competition and focus more on profitable growth.”

Yields, or average ticket price growth, was negative for Interglobe Aviation Ltd., the operator of India’s largest carrier IndiGo, in the quarter ended June because of excess capacity and stiff competition. Aviation turbine fuel prices have jumped nearly 20 percent and the rupee weakened by 10 percent this year, adding to the pain. It nearly wiped out IndiGo’s profit and pulled its yields lower. Jet Airways Ltd., the third listed airline in India, too is facing financial troubles and the company’s board deferred earnings.
20/08/18 Bloomberg Quint