Seems like Jet Airways’ downfall has extensively benefited Indian domestic carriers IndiGo and SpiceJet — both airlines have reported profits in the traditionally weak quarter ended March 2019.
The Interglobe Aviation-run IndiGo reported 401.2 per cent year-on-year growth in March quarter profit at ₹589.6 crore. As compared to the previous year, revenue from operations rose 35.9 per cent to ₹7,883.3 crore.
IndiGo’s Ronojoy Dutta said, “Fiscal 2019 was a tough year for the airline industry in India because of high fuel prices, weak rupee, intense competitive environment. However, it is a tale of two halves for IndiGo, with the first half of the year incurring losses and the second half of the year experiencing a sharp recovery.
“Looking ahead, it is difficult not to be bullish about the future. We see plenty of opportunities for profitable growth in our network and with a robust delivery stream of new aircraft, we are well positioned to capitalise on this growth”
Likewise, SpiceJet reported a profit of ₹56.3 crore in Q4 2019, as against ₹46.2 crore in the same quarter last year. Operating revenues for the low-cost carrier were at ₹2,531.3 crore for the reported quarter.
Ajay Singh, chairman and managing director, SpiceJet said, “SpiceJet has posted a strong recovery in last two quarters after suffering a loss of ₹427.5 crore in the first two quarters due to a steep increase in fuel costs and sudden depreciation of the Rupee. This recovery comes despite the unprecedented challenges we faced during Q4 FY2019 which saw the grounding of as many as 13 of our MAX planes.”
“With a massive fleet expansion this fiscal, a favourable operating environment, a likely return of the B737 MAX in July, significant improvements in yields and prime slots at key airports, we are confident of a strong performance for FY2020.”
Since Jet Airways’ temporary shutdown in April, Indian carriers, primarily IndiGo and SpiceJet can be seen aggressively taking over the vacant slots. In addition to adding new routes, the two airlines are also expanding their fleet on a big scale.