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SpiceJet posts a robust 21% growth in revenues
Outperforms the domestic industry with a 28% passenger growth
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Chennai, November 11, 2011
Spiraling fuel prices and a depreciating rupee combined to make an already tough
environment even more challenging during the quarter ended September 30, 2011. Despite
this, SpiceJet continued to grow passenger traffic by 28%, outperforming the domestic
industry passenger growth of around 19%.
Aircraft fuel expenses were 83% higher than same period last year and Fuel Cost
constituted 63% of the total revenue in the current quarter as compared to 43% in
the comparable quarter for the previous year.
The pricing environment continued to be weak, resulting in a decline in the average
passenger yields in current quarter by 4.8% to Rs.3,317. With increased capacities
getting inducted, load factor during the quarter were down to 67.4% from 73.6% during
the same period last year.
SpiceJet posted a loss of Rs.240 crores for the quarter ended September 30, 2011
compared with a profit of Rs.10 crores for the comparable period last fiscal year.
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Highlights for the quarter ended September 30, 2011 vs September 30, 2010
Operational
- 28% growth in number of passengers.
- 30% growth of Available Seat Kilometers.
- 40% growth in number of departures.
Financial
- 22% increase in Revenue from Operations.
- 4.8% decrease in passenger yields to Rs.3,317 from Rs.3,483
- Net loss of Rs.240 crores for the quarter compared to a Net profit of Rs.10 crores
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Neil Mills, Chief Executive Officer said, "The traditionally weak July-September
quarter was made more challenging this year by high fuel prices, depreciating rupee
and an irrational pricing environment. The highlight of this quarter was the successful
launch of our Bombardier Q-400 operations, adding 7 new cities to the SpiceJet network.
The initial response on all these routes has been very encouraging. We believe that
the future of aviation growth in the country will be driven by connectivity to Tier-II
and Tier-III towns from the metros. SpiceJet is well positioned to exploit the emerging
opportunities in these rapidly growing and under served locations.
We remain confident about the long-term prospects for air travel in India. The promoters
have infused an additional equity of Rs 131 crores recently in the month of October
2011. But we do hope that pricing aberrations of the past few quarters that have
plagued the industry will get rectified soonest. In fact, the developments of the
past few days perhaps indicate that a more rational operating environment may soon
be around the corner"
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Business Update for July - September 2011
Domestic traffic grew at 19% during the quarter over the same period previous year
and continued to show increasing inclination towards the low-cost carriers. The
market share of LCC’s increased from 42% during Q2F11 to 47% during Q2FY12. However,
yields remained under severe pressure due to a irrational pricing policies adopted
the larger domestic carriers thereby undermining the airline’s ability to pass on
the impact of the higher fuel price to the passenger in a growing market.
SpiceJet outperformed the broad industry yet again with a 28% growth in passenger
traffic. It also improved its market share from 12.8% to 13.7% during the same period
in the previous year.
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About SpiceJet Ltd.:
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SpiceJet (www.spicejet.com) is India's most
preferred airline, with more than 13% market share, delivering the lowest air fares
with the highest consumer value. We operate 256 flights daily to 30 Indian cities
and 2 international destinations. The city of Agartala, Ahmedabad, Bangalore, Bagdogra,
Chennai, Coimbatore, Delhi, Guwahati, Goa, Hyderabad, Jammu, Jaipur, Kochi, Kolkata,
Madurai, Mumbai, Nagpur, Pune, Srinagar, Varanasi and Visakhapatnam and two international
destinations, Kathmandu and Colombo are connected using our new generation fleet
of 30 Boeing 737-800 / 737-900ER aircraft are backed by cutting edge technology
and infrastructure to ensure the highest standards in safety and operating efficiency.
SpiceJet has newly acquired Bombardier Q400 aircraft for enhancing connectivity
to Tier II and Tier III cities. On this aircraft SpiceJet now connects Hyderabad
to 12 new cities - Tirupati, Rajahmundry, Vijayawada, Vizag, Mangalore, Bhopal,
Indore, Aurangabad, Nagpur, Pune, Trivandrum and Chennai to 6 cities – Goa, Kochi,
Mangalore, Trichy, Trivandrum and Vizag.
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SpiceJet is the winner of:-
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- Smart Travel Asia's Top 5 Best Budget Airlines in Asia (Aug 2010) and in Top 10
list for 2 consecutive years (Aug 2008 & Sept 2009, Hong Kong)
- Outlook Traveler’s Best Low Cost Airline (Feb 2008 & Feb 2010)
- Award for Best Website at 'World Low Cost Airlines Asia Pacific Conference' (January
2010 & January 2011, Singapore)
- India’s best low-fare airline in a survey conducted by MaRs on behalf of Hindustan
Times (December 2009)
- World Travel Market Award for multi-channel approach in distribution (November 2009,
London)
- National Award (ICWAI) for excellence in Cost Management (March 2009)
- CIO 100 Award for IT efforts for customer satisfaction and business growth (2007,
2008, 2009 & 2011)
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