Most airline stocks have rallied purely due to linear correlation with aviation turbine fuel prices without giving due consideration to other variables like utilisation levels, infrastructure costs etc., which also eat into margins, says market expert Prakash Diwan commenting on the weak show of InterGlobe Aviation in the first quarter.
Ajay Singh, promoter and chief operating officer, SpiceJet, says he hopes to sustain high load factors in the quarters to come.
SpiceJet has secured high load factors in February and the trend may continue this month too, said the airline‘s CEO Neil Mills. The airline could notch up 75 percent load factors, as it has already sold 10 lakh seats at flat Rs 2013 for travel between Feb-April.
Jet Airways’ vice president of finance, Shiv Kumar, tells CNBC-TV18 that the loss incurred in Q4 on an annual basis was mainly on account of fuel price hikes.