High-flying SpiceJet loses some of its speed as costs rise, yields weaken

What belied hopes of the Street was the muted increase in yields at 1.9 per cent, compared to the 3.5 per cent estimated by them

SpiceJet’s 51 per cent increase in revenues to Rs 2,845 crore in the September quarter was driven by a sharp increase in passenger volumes and a marginal uptick in yield.

The airline’s capacities increased by half in the quarter, while passenger volumes rose 29 per cent over the year-ago period.

However, what belied hopes of the Street was the muted increase in yields at 1.9 per cent, compared to the 3.5 per cent estimated by the Street. IndiGo’s passenger yields, in comparison, rose 9.4 per cent.

According to analysts at JM Financial, SpiceJet’s below-par yield increase was due to a significant increase in