After five consecutive quarters of losses, India’s second largest low-cost carrier SpiceJet (SG) posted a profit of INR561.2 million ($10.2 million) for the first quarter ended June 30, compared to a loss of INR719.6 million in the year-ago period. Revenue surged 51% to INR14 billion in the period. India’s financial year runs from April 1 to March 31.
The turnaround in SG’s performance was mainly due to higher fares. Indian carriers can charge about 30% more for tickets compared to last year after loss-making Kingfisher Airlines cut capacity substantially in its struggle to stay afloat
In a statement, SG CEO Neil Mills warned of tough market conditions: “While we expand our footprint in domestic as well as international sectors, the excessive taxation on ATF [aviation turbine fuel] in India and the weakening of rupee against the dollar are matters of serious concern. The sharp increase in airport charges and other pass-through levies in various forms increase the cost of air travel to our passengers without bringing any additional revenue to the airline. The need of the hour is for the government of India to intervene proactively and launch initiatives urgently to improve the health of Indian civil aviation.”
See the full article at Air Transport World