SpiceJet Q2 results: Low-cost carrier posts net loss of Rs 389.4cr on rising fuel costs, Rupee depreciation

SpiceJet Q2 results: Low-cost carrier SpiceJet Ltd today reported its second straight quarterly loss. The airline firm registered net loss of Rs 389.4 crore, in the wake of higher fuel expenses and depreciation in the rupee, according to a company statement. 

The statement further said that SpiceJet recorded a 4% rise in second quarter operational revenue to Rs 1880.9 Crore as it added more destinations and expanded its fleet of passenger and freight aircraft. The total income was Rs 1,910.3 crore for the reported quarter as against Rs 1,842.0 Crore in the same quarter last year. 

For the same comparative period, expenses were Rs 2,299.7 crore as against Rs 1,736.7 Crore; EBITDA before exceptional items were Rs 310.4 crore (loss) as against Rs 168 crore; EBITDAR before exceptional items were Rs 32.7 crore (loss) as against Rs 409.6 crore, it added.

Expenses per ASKM increased by 25% on account of 48% increase in ATF and 10% increase in exchange rate. The carrier reported a net loss of Rs 389.4 crore during July-September 2018 quarter on account of rising fuel costs and Rupee depreciation versus a profit of Rs 105.3 crore in the same quarter a year ago.

SpiceJet stated to have excelled on operational parameters to report the highest passenger load factor amongst all airlines in the country all through the quarter. The average domestic load factor for the quarter was 93.5%. SpiceJet has recorded the industry’s highest load factor for 42 successive months.

Ajay Singh – Chairman and Managing Director, SpiceJet 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.”

“SpiceJet has been on a spectacular growth journey and this quarter, in particular, has been very special for us. From inducting our new 737 MAX and Q400 planes to launching a dedicated air cargo service the foundation for our aggressive expansion while keeping the costs under check has been laid. With higher fares, the fall in global crude prices and currency appreciation we expect the operating environment to improve significantly,” he added.

Notably, SpiceJet became the first and only airline to successfully conduct India’s first-ever BioJet fuel powered flight.