SpiceJet slips into red, posts Rs 39 cr loss in Q3

Budget airline SpiceJet today posted a loss of Rs 39.26 crore for the quarter ended December 31, 2011, due to escalating ATF prices and increase in the US dollar rates.

The air carrier had a profit of Rs 94.44 crore for the comparable period last fiscal, it said in a filing to the BSE.

"... During the quarter ended December 31, 2011, we were able to realise major gains in market share, improve the revenue mix and achieve significant cost savings aided by a relentless drive to boost operational efficiencies".

"Accordingly, our losses at the Profit Before Tax (PBT) level fell by more than Rs 200 crore as compared to the immediately preceding quarter. But for escalating ATF prices and abnormal increase in the US Dollar rates the financial performance could have been much better this quarter," SpiceJet Chief Executive Officer Neil Mills said.

The December quarters loss has narrowed from Rs 240 crore that the Kalanithi Maran-led airline had reported during the second quarter ended September 30, 2011.

Further, during the third quarter, the company's revenue increased by 41% to Rs 1,175 crore from Rs 831 crore of the corresponding quarter a year ago.

The company said aircraft fuel expenses were 90 per cent higher than the same period last year and fuel cost as a proportion constituted 50 per cent of the total revenue in the current quarter compared to 37 per cent in the same quarter of the previous year.

"Increased cost of crude oil plus 24 per cent tax on ATF is continuing to impact the Indian civil aviation sector very adversely," the company said.

It, however, added the outlook for the industry is considerably better now with recent media reports indicating that a liberalisation of FDI in the sector may be on the cards.