A SpiceJet passenger Boeing 737-800 aircraft takes off from Sardar Vallabhbhai Patel international airport in Ahmedabad, India May 19, 2016. REUTERS/Amit Davereported a 33% surge in third-quarter passenger revenue on Friday as the low-cost carrier flew more customers at higher fares amid a boom in travel demand, sending shares up 13% to a two-month high.
The results come as the cash-strapped airline looks to raise capital with competition heating up in the industry. A rebound in passenger travel ensured strength in revenue for airlines like SpiceJet and rival IndiGoFor the quarter ended Dec. 31, SpiceJet's passenger revenue surged 33% as yields, a proxy for airfares, jumped 21%.
That helped offset a sharp decline in revenue from its freight and logistics business. Overall revenue was up 2.5% at 23.15 billion rupees. "There are renewed signs of recovery and some very positive developments and restructuring initiatives in the immediate offing that would significantly strengthen and de-leverage our balance sheet," Ajay Singh, chairman and managing director, said in a statement.
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