achieved around 74-75% seat factors during the fourth quarter; so if the break-even is around 70-71%, it should be enough for airlines to post some kind of a profit,” said a senior executive at one of India’s largest low-fare carriers. “With no Kingfisher Airlines this year, naturally that traffic will shift over to the other airlines; so even with higher fares, it shouldn’t be too difficult for airlines to match last year’s seat factors.”
Last year, Jet Airways had an average seat factor of 77.1% during the January-March quarter, while SpiceJet had a seat factor of 73.1%. However, the two airlines managed to achieve such seat factors due to low fares, which resulted in heavy losses. SpiceJet made a net loss of Rs 249.18 crore during the fourth quarter of 2011-12, while Jet Airways made a net loss of Rs 298.12 crore.