SpiceJet narrows net loss to Rs 186 cr

Income from operations increased by 31% to Rs 1,438 cr aided by strong growth in passenger traffic

India’s second-largest budget carrier, SpiceJet, narrowed its net loss to Rs 186 crore for the fourth quarter ended March, compared with Rs 249 crore registered in the corresponding period of the previous financial year.

While income from operations increased 31 per cent to Rs 1,437.7 crore aided by strong growth in passenger traffic, rise in passenger load and improved yields, the company was unable to absorb the higher costs of operations.

Total income increased 30.8 per cent to Rs 1,455.7 crore, total expense grew 23.7 per cent to Rs 1,641 crore, on account of high fuel costs and a depreciating rupee.

Chief Executive Neil Mills said, “The past 12 months continued to be difficult and the Indian aviation industry witnessed increasing cost challenges, particularly relating to airport charges and the adverse impact of the weakness of the rupee.”

Fuel expenses for the airline, in fact, increased about 25 per cent to Rs 775 crore between January and March, against Rs 620.5 crore recorded in the same period last year. Airport charges grew about 43 per cent to Rs 105 crore in the same period.

On the positive side, despite the increase in fares in recent months, passenger traffic for SpiceJet grew 20 per cent in the said period. Passenger load rose to 76 per cent from the earlier 74 per cent. Average yield per passenger improved by eight per cent to Rs 3,739 from Rs 3,460.

The airline’s market share in March went up to 20.4 per cent from 17.1 per cent in the same month last year.

“We continue to be confident of the future, particularly as we have launched numerous international routes and this will improve the mix and performance in the future,” Mills said.

For 2012-13, SpiceJet reported a net loss of Rs 191 crore, compared with Rs 606 crore posted in 2011-12. Total income increased 43 per cent to Rs 5,714.6 crore, compared with Rs 3,998 crore in the previous year.

Average yield per passenger went up 23 per cent to Rs 4,052 from Rs 3,293 a year earlier. Total expenses grew 29.3 per cent to Rs 5,880.5 per cent in the period.

Stocks of SpiceJet closed the day at Rs 37.8 apiece, up 2.58 per cent, on BSE.