Spicejet Q2 net loss at Rs 389.37 cr as high fuel cost, rupee fall take toll

Low-cost carrier Spiecejet Ltd Wednesday reported a standalone net loss of Rs 389.37 crore in the second quarter ended September 30, impacted by high fuel costs and rupee depreciation.

The company had posted a net profit of Rs 105.27 crore in the same quarter last fiscal, Spicejet said in a regulatory filing.

Net income from operations during the quarter under review stood at Rs 1,848.28 crore. It was at Rs 1,794.57 crore in the corresponding period of the previous fiscal.

Total expenses during the second quarter were at Rs 2,299.67 crore as against Rs 1,736.7 crore in the year-ago period.

"As an impact of strong cost pressures faced during this quarter, the company paid an amount of Rs 272 crore on account of increase in cost of aviation turbine fuel, Rs 78 crore on account of rupee depreciation and Rs 46 crore on account of forex losses on its obligations as compared to Q2 2017," Spicejet said.

Revenue performance, however, remained disciplined and fell by only 1 per cent in spite of severe competition, it added.

The carrier said it registered record domestic load factor of 93.5 per cent in the second quarter, while its capacity was up by 6 per cent.

Commenting on the performance, Spiecjet Chairman and Managing Director Ajay Singh said, "While it has been a challenging quarter for the entire industry, SpiceJet has managed to handle the sector headwinds well thanks to our aggressive network expansion, emphasis on cost reduction, induction of fuel efficient aircraft and the undying competitive spirit of our employees."
On the outlook, he said, "With higher fares, the fall in global crude prices and currency appreciation, we expect the operating environment to improve significantly."