SpiceJet lands roughly on some counts in December quarter

At first glance, SpiceJet’s December quarter (Q3) net profit of ₹73 crore looks impressive. A Bloomberg poll of analysts was expecting the airline to report a profit of ₹57.6 crore.

But a closer look at the numbers reveals some concerns. For one, its yield—a measure of pricing for airlines—has declined by 7% year-on-year. In contrast, market leader InterGlobe Aviation Ltd, which runs IndiGo, saw 1% yield growth for Q3.

Analysts at SBICAP Securities Ltd said in a report on 14 February: “Deployment of capacity on highly competitive erstwhile Jet Airways routes, coupled with weakness in demand has resulted in a 7% decline in yields for SpiceJet.”