SpiceJet Flight Registers Increased Revenues Despite Impacted Margins

SpiceJet, one of the leading airlines of India, operates over 330 daily flights across 47 Indian cities as well as 10 international destinations. The carrier has grown its passenger traffic by 9 percent and its revenues by 6 percent during the quarter ended in September 2013. But the unprecedented depreciation in the value of Indian Rupee impacted a revenue loss of 42 crore INR alone under the specified quarter.

Even the maintenance costs of the aircraft were affected as periodic engine servicing increased. The expenses summed up to additional 78 crore INR due to an upsurge in the number of engines sent periodically. Aviation Turbine Fuel Prices continued to maintain the status quo and prices per litre were expensive by 2 percent than its comparable numbers previous year for same period of time. Fuel itself constituted almost 56 percent share of the total revenue this quarter than 54 percent of the comparable quarter of last year. Also, the given loss by the airline is of Rs. 559 crores in the last quarter as compared to Rs. 164 crore loss in the previous fiscal year.

During the quarter, SpiceJet flight services were extended to two other international destinations – Muscat and Bangkok. These initiatives exert more pressure on the margins as a result of the start-up costs related to a new station set-up. Still the contribution from overseas flights will curtail costs with a better utilisation of the fleet-size. Travellers can access the SpiceJet Flight status and schedule online on the official as well as several airport and travel websites.

Due to the weak pricing environment, the average passenger yields has declined in the present quarter by 7 percent to 3711 INR, which was 4001 INR in the same period of previous year. Despite additional capacity, the carrier was operational with better efficiency as the increase in load factor was 71.8 percent during the quarter from 66.3 percent during the specified period last year.

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