SpiceJet slips on higher net loss in Q4

The low-cost airline's net loss widened to Rs 321 crore in the fourth quarter ended March from Rs 186 crore in the same quarter last fiscal.

SpiceJet is down 1.3% at Rs 14.75 on the BSE after the low-cost airline's net loss widened to Rs 321 crore in the fourth quarter ended March from Rs 186 crore in the corresponding period last year due to expensive jet fuel, a falling rupee and slow passenger growth.  This is third successive quarterly loss for the airline, taking the total to Rs 1,003 crore in 2013-14.

SpiceJet’s revenue in the quarter grew eight per cent to Rs 1,589 crore and passenger yield improved 17 per cent to Rs 4,735, but these could not contain the losses. In expenses, fuel, lease rent and airport charges increased while maintenance costs declined.

The airline is in discussion with foreign investors and financial institutions for raising capital. The management refused to share details but sources said the SpiceJet could raise as much as $100 million (Rs 600 crore). Fundraising has become essential as accumulated losses have eroded the budget airline’s net worth.

More than 3.2 million shares have been traded on the Bombay Stock Exchange so far.