After five straight quarterly losses, low fare carrier SpiceJet
has posted a Rs 56 crore profit for the June quarter. The stellar performance
of the company can well be attributed to higher passenger load factors and
atleast 24% growth in revenues per passenger. Had the Rupee not appreciated
against the dollar, the carrier would have posted better results, said SpiceJet
in a press statement.
Meanwhile, sales of the company rose 51% to Rs 1,407
year-on-year as the company improved its markets share in terms of passengers carried.
The share price of the company was quick to respond to the good performance of
the company and rose almost 16% to Rs 29.35.
Neil Mills, CEO of Spicejet says: “While we expand our
footprint in domestic as well as international sectors, the excessive taxation
on aviation fuel in India and the weakening of Indian Rupee against the US
dollar are matters of serious concern. The sharp increase in airport charges
and other pass- through levies in various forms are increasing the cost of air
travel to our passengers, without bringing any additional revenue to the
airlines." He further said that the need of the hour is that the
government should intervene proactively and launch initiatives urgently to
improve the health of Indian civil aviation.
Source: www.moneycontrol.com
Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd
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