Home Market SpiceJet reports Q2 loss of Rs 389 crore on higher fuel costs

SpiceJet reports Q2 loss of Rs 389 crore on higher fuel costs


NEW DELHI: SpiceJet on Wednesday reported a net loss of Rs 389.40 crore for the September quarter on surge in fuel costs and forex losses.

The airline had reported Rs 105.30 crore profit in the same quarter, a year ago.

Total income rose 3.7 per cent to Rs 1,910.30 crore from Rs 1,842 crore in the corresponding quarter last year.

The other two listed airlines, InterGlobe Aviation and Jet Airways, reported a profit of Rs 652 crore and Rs 1,297 crore, respectively, for the September quarter.

During the quarter, SpiceJet paid Rs 272 crore on account of increase in cost of Aviation Turbine Fuel (ATF), Rs 78 crore on rupee depreciation and Rs 46 crore on forex losses on its obligations (against YoY period), the company said in a BSE filing.

“While it has been a challenging quarter for the entire industry, SpiceJet has managed to handle the sector headwinds well, thanks to our aggressive network expansion, emphasis on cost reduction, induction of fuel-efficient aircraft and the undying competitive spirit of our employees,” said Chairman and Managing Director, Ajay Singh.

With higher fares, the fall in global crude prices and currency appreciation, we expect the operating environment to improve significantly, Singh added.

The company is all set to take deliveries of 10 Boeing 737 MAX aircraft in Q3 and up to eight MAX aircraft have been planned for inductions in Q4FY19. Further, four Q400 aircraft shall be inducted during Q3FY19 and up to four Q400s are planned for inductions in Q4FY19.

With the crude prices taking a fall in this quarter, the profitable performance is expected to pick up during the next 2-3 quarters, the company said.

The average domestic load factor for the quarter stood at 93.5 per cent. SpiceJet has infact recorded industry highest load factor for the last 42 straight months.

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