SpiceJet’s yields disappoint, other income boosts profit in June quarter

After InterGlobe Aviation Ltd reported 13% growth in yields for the June quarter, investors were probably expecting smaller peer, SpiceJet Ltd, to follow suit. InterGlobe Aviation runs IndiGo, the country’s largest airline by market share.

Unfortunately, that hasn’t played out. Paarth Gala, associate (institutional research) at Prabhudas Lilladher Pvt. Ltd, said SpiceJet’s yield for the June quarter increased by just 2% year-on-year. Broadly, this is a tad below Street expectations. As such, Gala was expecting it to increase by 3%.

“The airline’s operations remained stressed for a large portion of this quarter due to the continued grounding of its superior B737 MAX aircraft,” highlighted the management in the investor presentation.