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SpiceJet swings to loss in 1QFY2011; to commence regional operations in Sep-2011


SpiceJet, India’s second largest LCC, swung to losses at both the net and operating levels in the three months ended 30-Jun-2011 (1QFY2012) amid increasing fuel costs and industry discounting that prevented the LCC from significantly raising fares. The carrier’s decline into the red also reflected the impact of a “sudden spurt in capacity addition combined with irrational competitive pricing by the larger airlines resulted in a challenging operating environment” during the quarter. Meanwhile, the carrier confirmed plans to launch regional operations from Sep-2011 after the central bank approved financing of its Bombardier Q400 aircraft by Export Development Canada. [1820 words]

Unlock the following content in this report:


  • Operating loss of USD15.3 million; net loss of USD14.4 million. EBITDAR margin of 7%
  • 5.5% increase in passenger yields; Load factors slump 8.9 ppts
  • SpiceJet opens bookings for Q400 operations with seven new destinations
  • To receive first four Q400s in Aug-2011
  • To expansion regional and international networks; looking at partnerships with other international LCCs
  • Kal Airways pledges 86.2% of holding in SpiceJet
  • To benefit from regional expansion; full-year profit still likely despite pressured yield environment

Graphs and data:

  • SpiceJet operating profit margin and net profit margin: 1QFY2010 to 1QFY2012
  • SpiceJet route network: Aug-2011
  • Shares Comparison for Kingfisher Airlines, SpiceJet, Jet Airways for the Last 12 Months
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