SpiceJet Q1 Revenues jump 32% over same period last year
Increases market share to 14% in a difficult operating environment
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New Delhi, August 12, 2011
The summer season of FY2012 saw domestic capacity addition grow nearly 5% ahead
of the demand growth of around 15%. This sudden spurt in capacity addition combined
with irrational competitive pricing by the larger airlines resulted in a challenging
operating environment. Additionally, Q1FY12 also saw a steep increase in fuel price
over Q1FY11, which made the cost environment adverse. Despite these challenges,
SpiceJet increased its domestic market-share from 13% to 14%.
SpiceJet posted a Loss of Rs.72 crores for Q1FY12 and in a challenging cost environment
reduced Non-Fuel cost per ASKM by 5% from Rs.1.65 to Rs.1.57. The average passenger
yields were higher by 5.5% at Rs. 3663 indicating that SpiceJet was successful in
passing on some part of the fuel price increase despite the challenging competitive
environment. Seat Factors during the quarter were 78.9%.
Fuel prices during Q1FY12 were 43% higher than same period last year and Fuel Cost
constituted 53% of the total costs in Q1FY12 as compared to 36% in Q1FY11 and 42%
for the full year FY11.
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Highlights for the quarter ended June 30, 2011 vs June 30, 2010
1.Operational
- 25 % growth in number of passengers.
- 36.7 % growth of Available Seat Kilometres.
- 40 % growth in number of departures.
2.Financial
- 32% increase in Revenue from Operations.
- 5.5% increase in passenger yields to Rs.3,663 from Rs.3,472.
- EBIDTAR margin at 7%.
- Net loss of Rs.72 crores for the quarter compared to a Net profit of Rs.55 crores
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Neil Mills, Chief Executive Officer, said, "During these three months we
have firmed up our future expansion plans and have been preparing the ground for
the rapid expansion planned over the next 3 years. We have recently received requisite
approvals for the import of Bombardier Q-400 aircraft backed by financing from Export
Credit of Canada. With this we are glad to announce that we have today opened our
bookings for our Q400 operations. We will be connecting Hyderabad to Aurangabad,
Bhopal, Indore, Mangalore, Rajahmundry, Tirupati, and Vijayawada. We are very happy
to be entering this new phase of growth by promoting much needed air connectivity
to Tier-II and Tier-II towns, which we believe holds the future of the aviation
industry in the country."
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Business Update for April - June 2011
Domestic traffic grew at 15% 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 42.6% to 47.6% during this period. However,
yields remained under severe pressure due to an irrational pricing environment that
prevailed in the market, 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 25% growth in passenger
traffic. It also improved its market share from 13.0% to 14.0% 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 14% market share, delivering the lowest air fares
with the highest consumer value. We operate 202 flights daily to 21 Indian cities
viz. 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.
SpiceJet's 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.
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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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