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Analysis & Features

Indigo Q2 fiscal 2017 results analysis – Capacity affects yields and profits

IndiGo first A320neo VT-ITC touches down at New Delhi's IGI airport after a non-stop flight from Toulouse, France

IndiGo reported its second quarter (ending September 30) results for the fiscal year ending March 31 2017 (FY2017). With earnings of Rs 139.8 crores, the results yet again failed to meet analysts’ expectations. As reported earlier, intense competition in the market, consistent fare sales and aggressive capacity addition have added to the revenue pressures. Key numbers Passenger Revenue – Rs. …

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Fastest flights between Bangalore and San Francisco

Earlier this week, Singapore Airlines launched its non-stop Singapore San Francisco flight, shaving a few hours off their total flight time between the Silicon Plateau of Bangalore (BLR) and the Silicon Valley served by San Francisco (SFO). The San Francisco Bangalore route is one of the most lucrative for the airlines. Even an airline not renowned for their service, Air …

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SpiceJet Q1FY17 results analysis

Spicejet Boeing 737-800WL VT-SGK at New Delhi airport.

SpiceJetJet reported numbers for the first quarter and the earnings did not disappoint. For the quarter ending 30 June 2016, the airline reported a net profit of INR 149 crores with the same fleet as the previous quarter. The impact on the share prices was almost immediate with almost a 20% rise to INR 67.7 per share. An analysis of …

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Jet Airways Q1 FY2017 results analysis – headwinds and turbulence likely

Jet Airways Boeing 777-300ER VT-JEG performing flight 9W117 from London approaches Mumbai airport

Jet Airways reported results on August 12th with a net profit of Rs 103.1 crores on revenues of Rs 5,112 crores for the first quarter of fiscal year 2016-17 (FY17). The results indicate several challenges and highlights are as below: Operational performance The quarter saw an overall capacity increase of 3.8% compared to the same quarter last year, when measured …

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Indian carriers’ flights cancelled as Dubai airport curtails operations

Dubai airport at dawn

All Indian airlines operating to Dubai have cancelled their flights for today. This includes IndiGo, Spicejet, Jet Airways, Air India, and Air India Express. Jet Airways and Air India have just one of two flights to the Gulf city. Dubai Airports authorities have curtailed operations to a single runway at DXB airport in the aftermath of the crash of Emirates …

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Indigo first quarter FY2017 results analysis – profitable but challenges loom

Indigo Airbus A320neo VT-ITC. Copyrighted image. Re-use prohibited.

India’s largest domestic airline IndiGo, reported its first quarter results for the FY2017. With earnings of Rs 591.8 crores, the results yet again failed to meet analysts’ expectations bringing down its stock price from Rs 994.9 on August 1, to Rs 865.2 on August 3, 2016. Capacity increase outpacing passenger volumes impacting operational performance For the first quarter of fiscal …

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Lean season brings bounty of offers for passengers

A view of the ramp at Bangalore Airport.

SpiceJet is offering a 10% discount to students. Tata-Singapore Airlines Vistara is offering corporate travellers, free upgrades to their business and premium economy classes. Jet Airways is offering ‘Fare Choices’, where you the passenger decide what services you are willing to forgo to get a lower fare. National carrier Air India is offering low same-day return fares in both economy …

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Indian airlines offer famous food brands to woo passengers

Airlines in India are partnering with famous food brands to leverage their ‘star power’ in an effort to woo passengers. The partnerships are with both home grown and glocal (global brands operating locally) brands. Last month, India’s largest private airline Jet Airways, announced a partnership to serve Subway sandwiches and Krispy Kreme doughnuts on board its flights. A week back, low-fare carrier …

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India permits 100% foreign investment in airlines and airports

Domestic ramp at Mumbai Chhatrapati Shivaji airport. Photo copyright Devesh Agarwal.

As part of a dramatic overall liberalisation, the Indian government will allow 100% foreign direct investment in domestic airlines. At present the limit is 49%. However, the caveat is that the 49% is automatic approval while the 100% is automatic for non-resident Indians (NRIs) and with government approval for others. Foreign airlines remain limited investing 49% in Indian companies operating …

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Jet Airways Q4 and full year 2015-16 results and performance analysis

Jet Airways Boeing 737-700 VT-JNS at Bengaluru Kempegowda airport

Jet Airways recently reported numbers for the quarter and the year. For the fourth quarter ending 31 March 2016, the airline reported an impressive net profit of Rs 3,972 million and for the year a net profit of INR 11,733 million. After extensive research into qualitative and quantitative details an analysis is presented below: Strategic shift Jet has moved away …

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SpiceJet’s record profits & turn-around. Fiscal 15-16 results analysis

Spicejet Boeing 737-800WL VT-SGK at New Delhi airport.

SpiceJet has reported its highest ever profit of Rs 407 crores for the financial year ending 31 March 2016. For the quarter ending 31 March 2016, the airline reported a net profit of Rs 73 crores. Strong performance indeed, considering that the airline had reported a loss of Rs 687 crores for the last financial year. Operational performance A look …

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Indian aviation largely overlooked in the 2016 budget

The nightly aircraft line-up tail parade at the apron of Kempegowda International Airport Bangalore

For all the talk of the Government promoting aviation and as the industry watched with baited breath, the budget seems to have continued the Modi-government’s ignoring of  civil aviation. The sum-total budget proposals pertinent to aviation do not even warrant us writing an article. If anything, they could likely be summed up in an SMS message. Namely, Aviation turbine fuel (ATF) …

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Analysis: How will IndiGo integrate the Airbus A320neo?

IndiGo's first A320neo. MSN6799. VT-ITC. Photo courtesy the airline.

Indigo received their first Airbus A320neo (new engine option) today and within a week of the Directorate General’s of Civil Aviation approval with type certificate. With a few more formalities the aircraft will be ready to fly the Indian skies making Indigo the first Asian and Indian operator of the new aircraft. Other airlines (GoAir, Vistara and Air India, all have …

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Indian airlines’ 2015 annual review – IndiGo, Vistara, and Spicejet the leaders

The nightly aircraft line-up tail parade at the apron of Kempegowda International Airport Bangalore

Which is the best airline in India? To which we would say, “by what measure?” An analysis of the DGCA’s data on domestic air travel shows some interesting and contradicting results. The biggest airline by number of passengers is IndiGo. The most punctual airline is Vistara. Spicejet had its aircraft filled the most, but it is also the leader in …

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SpiceJet Q3 FY2016 results analysis – record profits on the path of recovery

SpiceJet Boeing 737-800 VT-SPJ. Photo copyright Devesh Agarwal.

SpiceJet reported its highest ever profit of Rs 238 crores for fiscal year 2015-16, third quarter ending December 31, 2015. With revenues of Rs 1,439 crores, this continues the upward climb for SpiceJet. A phoenix rising Last year during this same period SpiceJet was in turmoil, on the brink of a shut-down with auditors doubting its ability to continue as …

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