My Account Menu

CAPA Login

Register to trial CAPA Membership!

SpiceJet orders 30 more B737s, Jet Airways rises in earnings afterglow. Korean airline stocks ease


Indian low cost carrier SpiceJet has placed an order for 30 new B737-800s at a list cost of USD2.7 billion for delivery between 2014 and 2018.

SpiceJet will add seven aircraft this year and plans to induct a similar number or slightly more by the end of the next financial year, to operate 50 aircraft by 2014 (the same number as AirAsia’s Malaysian operation at present – see related report: AirAsia load factors rise, Jetstar expands long-haul, Tiger’s ‘vertical seating’ and Virgin’s middle

SpiceJet’s first quarter net income surged 110% to USD11.8 million for the three months to 30-Jun-2010. Director, Ajay Singh, stated the outlook for the next few quarters looks good, stating: “We are looking to take a disproportionate share of growth in the aviation market”. Acting CEO, Kishore Gupta, commented: "We expect domestic demand to grow at 16% during the current year and to sustain a 12-14% annual growth going forward in the medium term".

SpiceJet's shares gained 0.3% yesterday. Kingfisher also gained 0.3%.

Jet Airways’ shares rallied 4% yesterday as investors digested the carrier’s first quarter earnings and positive outlook. See related report: Jet Airways returns first quarter bottom line to profit

Korean Air lower, SIA gains

Elsewhere, Korean stocks closed marginally lower yesterday, with Korean Air falling 0.6% to KRW78,000 and Asiana Airlines slumping 2.9% to KRW9,360 on profit taking after recent rallies.

Thai stocks hit 26-month highs yesterday, although Thai Airways was flat, while Singapore Airlines rose 1.8% after it reported a better-than-expected first quarter net profit and analysts upgraded its target price. See related report: Singapore Airlines returns to profit in first quarter; expecting recovery to continue

Asia Pacific selected airlines daily share price movements (% change): 27-Jul-2010

Want more analysis like this? CAPA Membership gives you access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find out more and take a free trial.