Accumulated losses at Spicejet have eroded its entire net worth: Auditor

SpiceJet, India's second-biggest budget airline by market share, narrowed losses by 31.7 percent in the July-September quarter, benefiting from massive cuts in capacity by troubled rival Kingfisher Airlines.

SpiceJet said on Monday it lost Rs 164 crore in the quarter that ended on September 30, compared with a loss of Rs 240 crore a year ago.

Meanwhile, the company's auditors said that accumulated losses at the airline have fully eroded the net worth of the company as on September 30.

The company's ability to operate on a "going concern" basis is "significantly" dependent on establishing continued profitable operations and raising cash to meet short- and long-term obligations, the auditors said in a review report to the company.

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