SpiceJet slumps to loss on litigation cost, currency

SpiceJet, the Indian discount airline backed by billionaire Wilbur Ross, slumped to a third- quarter loss on costs related to settling litigation and currency fluctuations.

The Rs 17.96-crore net loss in the three months ended December, compared with Rs 9.34 crore profit a year earlier. Sales rose 16 per cent to Rs 470 crore. SpiceJet spent Rs 18.8 crore in the quarter to settle lawsuits with founder S K Modi, it said in a statement. The carrier also lost Rs 5.5 crore due to foreign exchange fluctuations.

The New Delhi-based company fell 5.3 per cent to Rs 13.26 on the Bombay Stock Exchange. The shares have fallen 17 per cent this year, extending last year’s 82 per cent plunge. Pretax profit for the New Delhi-based airline fell 80 per cent to Rs 1.95 crore in the quarter, the statement said. That included a gain of Rs 43.4 crore from the sale of aircraft. The airline’s fuel bill, its biggest expense, rose 15 per cent after the carrier added more routes.