SpiceJet Reports Second Straight Quarterly Loss

Thomson Reuters

14 Nov 2018, 02:10 PM IST

The company had posted a profit of Rs 105 crore a year earlier.

Low-cost carrier SpiceJet Ltd reported its second straight quarterly loss on Wednesday, hurt by higher fuel costs and a weaker rupee. Standalone net loss, which excludes results of units SpiceJet Merchandise and SpiceJet Technic, was Rs 389 crore ($53.90 million) in the quarter ended September 30, compared with a profit of Rs 105 crore a year earlier. Aircraft fuel expenses climbed 55.8 per cent to Rs 845 crore.

A combination of rising oil prices, high fuel taxes, a weak rupee, low fares and intense competition have slashed profits in the world's fastest-growing aviation market which is clocking 20 per cent annual passenger growth.

Rivals Jet Airways and InterGlobe Aviation Ltd, which owns the country's largest domestic carrier by market share - IndiGo, also reported losses for the September quarter.

SpiceJet, based in Gurugram, said its results were expected to pick up over the next two-three quarters and that it would take deliveries of 10 Boeing 737 MAX aircraft in September-December.

Shares of SpiceJet were up 3.50 per cent, while the broader Mumbai market was almost flat.

($1 = Rs 72.16 Rupees)