Airliners-India.com

selecta · Member Joined: 24 Dec 2006 Posts: 813 Location: ORD

BS Reporter / Bangalore January 25, 2007
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Deccan Aviation, operator of low cost carrier Air Deccan, posted a net profit of Rs 9.64 crore for its second quarter ended December 31, 2006.

Net income from operations in Q2 stood at Rs 474.89 crore, up 32.39% on a sequential basis compared to Rs 358.70 crore in Q1.

Air Deccan, in its first quarter (July-September 2006), reported a net loss of Rs 42.94 crore.

An official statement issued today said: "The composite yield (revenue per passenger) recorded a 9.55% growth in the last quarter despite a 15% increase in seat capacity over Q1. The company has achieved a market share of 19.7%."

Capt G.R Gopinath, managing director, Deccan Aviation, said: "We are pleased with the performance in the current quarter. We have constantly maintained average load factor of 73% and achieved over 98% (within 1hour) on time performance."

Mohan Kumar, director (finance), Deccan Aviation, said: "Our Q2 revenue moved up 19% mainly on account of cost controls. Our cost per seat kilometer is Rs 3.18, which is amongst the lowest in the country. Our average yield per passenger was Rs 2,615 this quarter as against Rs 2,512 in the quarter ended December 2005 despite a significant increase in seat capacity."
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Nimish · Posted: Fri Jan 26, 2007 6:34 pm Post subject:

Given this is the quarter with the highest loads, it's surprising how low the profit was. Hopefully they don't sink back into the red in the leaner quarter coming up now!

VABBy · Member Joined: 19 Dec 2006 Posts: 823 Location: DEL

well loads were good so were the earnings bt then heaps of the money was also refunded back to the pax due to massive flight cancellations. Hence the lower profit and i bet this profit also includes certain lease back of its A320 aircrafts. Btw hw many A320,s do these people have nw
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AKLDELNonstop · Member Joined: 19 Dec 2006 Posts: 1066 Location: Auckland

Is it the first time DN has posted a profit since 05?
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HAWK21M · Posted: Sat Jan 27, 2007 9:43 am Post subject:

Why only 9 cr.To get out of the Red.Airlines need better performances.
regds
MEL
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Nimish · Posted: Sat Jan 27, 2007 9:23 pm Post subject:

This is a question on the revenue recognition model used by airlines. I assume they only revenue they can count is for the flights actually flown? Not for the bookings they received for future months?

ssbmat · Member Joined: 20 Dec 2006 Posts: 1710

I may be some what offkey but the P/L statements come from the General Ledger of companies, where Debits/Credits are made.

unless invoices are paid for (like leases etc) they cannot be booked I think.
It doesnt matter if the flights are booked for future. If at all the ticket has to be refunded, it will be an expenditure.