Tuesday, February 12, 2019

New planes may lower Spicejet's fuel cost by 25 p/CASK: Report

Budget carrier Spicejet is likely to see around Rs 0.25 reduction in fuel cost per available seat kilometer (CASK) in FY20 over the December quarter based on the prevailing crude prices and the rupee levels, and as it inducts new planes, says a research report on the airline.
The Gurugam-based airline, which posted a much lower profit at Rs 55 crore in the December quarter over the period year-ago, down 77 percent year-on-year, may see this cost declining further by another around Rs 0.10 seat-kilometer as it inducts more fuel-efficient Boeing 737-Max8 aircraft, brokerage Elara Capital said in a note Tuesday.
The Company has seven Boeing Max and one 737 freighter lined up for inductions during the last quarter of this financial year.
"We estimate Spicejet fuel CASK (cost per available seat km) will decline by around Rs 0.25 per seat-km for FY20 over the December 2018 quarter numbers, based on current crude prices and the rupee level.
"Moreover, addition of fuel-efficient Boeing 737-Max8 aircraft would further reduce fuel CASK by around Rs 0.10 per seat-km," Elara said.
Impacted by a 34 percent increase in fuel cost and another 11 percent surge in exchange rates, the airline's net profit plunged 77 percent to Rs 55 crore during the three months to December from Rs 240 crore a year ago.
12/02/19 PTI/Economic Times
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