These Losses are absolute Market Tactics guys...Government in india is already so hard on airline business, not supporting them in any matter what so ever. hence the MDs and CEOs of these airlines are not dumb. they will always announce the negative results(in reality they are positive) only to get some soft outputs of Government. lets just use some common sense here...if all of theses airlines including Jet, Spice jet and Go air are not making any profit then why the hell those guys would sign such huge deals with Boeing and Airbus as a plan of their expansion?
Not the first time I have heard such remarks about airline results. You must know the penalties applicable for incorrect reporting practices by public companies. The Ministry of Corporate Affairs(MCA) oversees the financial reporting. Remember Satyam scandal of 2009 and its aftermath? The penalties are heavy, to say the least. Risk Reward ratio for these airlines to report dismal numbers is very high.
Q. Why airlines make big orders?
Ans. Because they can. Easy availability of money. Soon it will be easier than ever before when airlines go for ECBs & FCCBs.
Ego and fear also play a big part here. Nobody wants another airline to be bigger than theirs. Indigo has done well so far. But it could be the hardest hit in the future if it is unable to fill those seats that it plans to fly after 2016. Spicejet is considered the most pragmatic of all. Their funda is-Market Share doesn't translate into higher profits. Watch out for Spicejet!
What about the other operators here, Indigo, GoAir, Air India, Jet Airways etc? Are those results available publicly anywhere?
Jet Airways Jet and JetLite have increased capacity by 18% in 2012 vs 2011. The pax have grown 16%. Staff has increased by only 354 in 1 yr. Aircraft increased from 97 to 101.2(Avg). Breakeven seat factor 91.3%.
Q4 FY12 Results Revenues increased 24.4% as compared to Q4 FY11. Loss Rs.298.1cr vs Rs.124.5cr.
Spicejet Total income for the year up form Rs.2937cr to Rs3997cr. Loss of Rs.605cr. Last year had profit of Rs.101cr.
Non current liabilities(Loans) up from Rs.25cr to Rs.744cr. This could add to their interest costs in the future.
Q4 FY12 Results Revenues increased 46% as compared to Q4 FY11. Loss Rs.249cr vs Rs.58cr.
Kingfisher too sick to analyse at this stage.
All the listed companies result are available on their website under 'Investor relations'. Also available on BSE/NSE website and other Financial websites. Indigo, GoAir and Air India are not publicly listed. They are not required to make their results public.