Advertisement

  • News
  • Columns
  • Interviews
  • BW Communities
  • Events
  • BW TV
  • Subscribe to Print
BW Businessworld

SpiceJet Posts Second Quarterly Loss On Higher Fuel Costs, Weak Rupee

Standalone net loss, which excludes results of units SpiceJet Merchandise and SpiceJet Technic, was 3.89 billion rupees ($53.90 million) in the quarter ended Sept. 30, compared with a profit of 1.05 billion rupees a year earlier

Photo Credit :

1453714955_a5jM9I_Spicejet_AV_lrg.jpg

Low-cost carrier SpiceJet Ltd reported its second straight quarterly loss today, hurt by higher fuel costs and a weaker rupee.

Standalone net loss, which excludes results of units SpiceJet Merchandise and SpiceJet Technic, was 3.89 billion rupees ($53.90 million) in the quarter ended Sept. 30, compared with a profit of 1.05 billion rupees a year earlier. Aircraft fuel expenses climbed 55.8 percent to 8.45 billion rupees.

A combination of rising oil prices, high fuel taxes, a weak rupee, low fares and intense competition have slashed profits in the world's fastest-growing aviation market which is clocking 20 percent annual passenger growth.

Rivals Jet Airways (India) Ltd and InterGlobe Aviation Ltd, which owns the country's largest domestic carrier by market share - IndiGo, also reported losses for the September quarter.

SpiceJet, based in Gurugram, said its results were expected to pick up over the next two-three quarters and that it would take deliveries of 10 Boeing 737 MAX aircraft in September-December. Shares of SpiceJet were up 3.50 percent, while the broader Mumbai market was almost flat.


Tags assigned to this article:
spice jet quarterly results aviation sector
sentifi.com

Top themes and market attention on: