SpiceJet: Seasonally weak Q2 could add to company's accumulated losses

The company is operating at less than half of its pre-Covid schedule and also has much lower load factors currently

The reduction in aviation turbine fuel (ATF) prices, for the second time in September, came as a breather. 

Yet, InterGlobe Aviation (IndiGo) and SpiceJet closed 0.3-1.6 per cent down in trade on Wednesday. 

Given that the cut in ATF prices followed price hikes in June, July, and August, gains remained limited.  

Fuel is the single biggest cost head for airlines, accounting for 40 per cent of revenues. Muted Q1 results, a seasonally weak September quarter, and moderating passenger traffic all weighed on sentiment.

Average volumes — in the 16th week of resumption in air travel — declined to 115,000 passengers, against 124,000 fliers last