Passenger growth and a stronger rupee offset the impact of higher crude oil prices on the quarterly earnings of India’s three listed airlines.
The carriers ferried 17 percent more passengers and the Indian currency appreciated 4 percent in the quarter ended June over the year-ago period. That helped them mitigate the 16 percent rise in the prices of aviation fuel during the period.
Here’s how SpiceJet Ltd., Jet Airways (India) Ltd. and InterGlobe Aviation Ltd. fared in the first quarter ended June:
Revenue available per seat kilometre, an indicator of efficiency, grew the most for IndiGo and remained flat for Jet Airways.
SpiceJet was the only carrier for which costs rose in the three months ended June. The company’s cost per seat kilometre excluding fuel increased 1 percent. Costs declined for its two rivals.
As the fuel prices rose 16 percent, the total cost per seat kilometre rose for all the three airlines.
Jet Airways’ net profit more than doubled on the back of lower provisioning. Profit rise for all the three airlines after two quarters.
The airlines expect to maintain the momentum, riding on domestic demand and a benign fuel price outlook.
The domestic air traffic increased at a compounded annual growth rate of 20 percent in the last three years and is expected to maintain the trajectory in the next five years, brokerage Elara Capital said. The government’s bid to boost regional connectivity through UDAN, which offers private airlines subsidy to fly on regional routes, and the global fuel surplus will boost the fortunes of Indian carriers, it said.
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