SpiceJet Q3 net loss at Rs.275 crore

Budget passenger carrier SpiceJet Thursday reported a net loss of Rs.275 crore for the quarter ended Dec 31.

The company had reported a net loss of Rs.172 crore in the like period of 2013-14.

The company said that if it was not for a one-off and exceptional items that include maintenance reserves write-offs, unproductive lease rentals, and provisions for impact of fleet reductions and early contract terminations, it would have achieved a net profit of Rs.20 crore for the quarter under review.

"Excluding one off and exceptional costs, the company would have achieved a profit of Rs 20 crore for the quarter, even with the cancellations and impact on revenue," said Sanjiv Kapoor, chief operating officer, SpiceJet.

"The timing of our fleet reductions was unfortunate as it severely impacted our high season and more than negated the positive impact of declining fuel prices. However the worst is behind us now."

According to the company, the impact of aircraft fleet reductions negatively impacted both revenues and costs.

"With imminent recapitalisation, our focus going forward will be on re-negotiating contracts and settling outstandings, which are together expected to bring down costs considerably," said Kiran Koteshwar, chief financial officer, SpiceJet.