SpiceJet net loss at Rs 71.9 cr

Hit by higher fuel price and irrational competitive pricing, low-cost carrier SpiceJet on Friday reported a net loss of Rs 71.9 crore in the first quarter of this financial year.

The company had closed the corresponding in the last year with a net profit of Rs 55.2 crore.

“Fuel prices during the first quarter in this fiscal were 43 per cent higher than same period last year and fuel cost constituted 53 per cent of the total costs in the first quarter as compared to 36 per cent in the same quarter last year,” said a release from the airline.

The airline’s fuel bill for the first quarter this year increased by 37 per cent compared with the same period last year.

Average passenger yields for the quarter were also higher by 5.5 per cent to Rs 3,663 crore. Total income of the company also increased by 32 per cent to Rs 945.6 crore in the quarter under review as against Rs 716.8 crore in the same period last year. Seat factors during the quarter were 78.9 per cent.

SpiceJet has announced the opening of bookings for the first phase of its much-anticipated Q-400 operations at an all-inclusive inaugural fare beginning from Rs 1,999.

In this phase, it will connect Hyderabad to seven popular Tier II and Tier III destinations — Aurangabad, Bhopal, Indore, Mangalore, Rajahmundry, Tirupati and Vijayawada.

“We decided to strategically focus on improving air connectivity in Tier-II and Tier-III towns as we believe there is a large market in India which is yet to be touched by the benefits of the aviation revolution,” said SpiceJet CEO Neil Mills.

Hyderabad’s Rajiv Gandhi International Airport (RGIA) had been chosen as the first base for the regional operations. “The south-central location of Hyderabad reduces flying time to any of the cities in the region making it the most suitable location to connect other cities especially in the South. The location advantages of Hyderabad also allow exploring and developing markets in the west, central and eastern part of the country,” said a release from the airline.