SpiceJet expects to have a “good” fourth quarter ending 31 March, as it forecasts lower overall spending, particularly on fuel.
In a televised interview, the Indian low-cost carrier’s chairman and managing director Ajay Singh says the impact of fuel prices coming down in November and December 2018 “has been transferred… in January and February”.
Singh adds that more deliveries of Boeing 737 Max aircraft will be another major contributor towards a lower cost base.
In its latest Q3 results, SpiceJet said that it expects to induct seven 737 Max 8s.
Flight Fleets Analyzer shows that the carrier has 12 of the type in operation, with another 118 on order.
Singh also says that SpiceJet will add between 20 to 25% capacity in the current quarter.
“We expect to have a good quarter.”
On the topic of aviation fuel taxes, Singh says that there is “broad consensus [within the aviation industry in India]” that it needs to be brought under the ambit of the country’s goods and services tax. However, he adds that “around one or two states” have yet to come on board with the ATF changes.
“This would put us on par with airlines around the world, many of whom we are competing with increasingly.”
However, he admits that he is doubtful that such a move would take place before the upcoming general elections likely to occur between April and May.