SpiceJet: We Won't Turn a Profit Until 2010

The rapidly rising price of fuel, coupled with the slowdown in Indian passenger demand has led SpiceJet's CFO to say that the airline will not break even until at least 2010. Fuel costs have increased 56% in the past year, and now comprise an absolutely incredible 52% of SpiceJet's total costs. Despite the cost increase and slowdown in traffic growth, SpiceJet will buck the trend and grow their aircraft and destinations in the current year. While that may seem like a smart move now, if fuel prices continue upward they will likely have no choice but to cut back and rationalise their route map.