3 reasons why IndiGo, SpiceJet, Jet Airways may report profits in Q1
While IndiGo will announce its results on 31 July, SpiceJet and Jet Airways are yet to announce a date.business Updated: Jul 26, 2017 17:48 IST
India’s three listed airlines are expected to report profits for the quarter ending June improving on their last year’s performance, according to analysts.
InterGlobe Aviation Pvt. Ltd-run IndiGo, SpiceJet Ltd and Jet Airways Ltd are expected to announce their quarterly numbers over the next one month.
“Because of higher passenger occupancy and because airlines were able to command better airfares there is likely to be some improvement,” said an airline official, who did not wish to be named
While IndiGo will announce its results on 31 July, SpiceJet and Jet Airways are yet to announce a date.
Three factors have helped the airlines this quarter.
First, airlines have been able to get better fares from passengers, on average.
Second, there has been a reduced rupee impact (about Rs64 to a dollar this quarter versus Rs67 last year). Many of the airlines’ costs are dollar denominated.
Third, passenger growth in the quarter has remained in double digits (15-20%), which reflected in the airlines’ shares that have soared.