SpiceJet reports improvement in passenger traffic in July

Budget air-carrier SpiceJet said it has witnessed a healthy improvement in demand and expects to post a 10 per cent rise in passenger traffic this month but low yields still remain a cause of concern. "After being constantly on the decline for quite some time now, demand for air travel grew by 12 per cent in June and we expect it to grow by 10 per cent in July," SpiceJet Chief Executive Officer Sanjay Aggarwal said. Demand for air travel is witnessing an upward trend after a long interval and this is a "silver lining" for the beleaguered industry, he said. SpiceJet has posted a healthy performance in Q1FY'10 clocking a 15 per cent jump in its revenues, Aggarwal said, adding "however, low yields remain a cause of concern." The airline, which declared its Q1 results on Monday, posted a net profit of Rs 26.34 crore against a loss of Rs 129.22 crore in the year-ago period. Describing the air-carrier posting a profit as a creditable achievement, he said, "We have been able to squeeze out a profit (even) in this time of gloom and doom." However, for the industry to sustain its business, yields need to improve significantly, he added.