Deccan Aviation shrinks Q3 losses with sale and lease-back deals, higher fares
23 Apr 2008
New Delhi: Bangalore-based Deccan Aviation Ltd, India's largest low-cost airline, has reported losses of Rs199.6 crore for its third quarter. It said that losses were 6.6% less as compared to the year ago period on the back of higher average ticket realizations during the period, as also the sale-and-lease-back deals on two planes.
Average ticket realisations had expanded more than 36% during Q3 of the company's fiscal year, the pioneering low-cost carrier said.
Stronger operations also helped it offset record fuel costs, according to Ramki Sundaram, Deccan's officiating chief executive. The carrier experienced lower seat occupancy on its flights for the quarter, it said.
It reported total revenues of Rs607.66 crore for the latest quarter, up one-third from Rs457.45 crore in the March quarter of 2007. It received Rs25 crore from sale and leaseback arrangements of two of its aircraft.
Q3 performance now takes accumulated losses at Deccan Aviation to Rs643.64 crore.
Deccan controls about 14.6% share of the domestic air passenger market, according to current figures.
The January-March period was also the first quarter when Deccan ran under a UB Group-run management.
The UB Group now has a controlling stake in the airline.