BackSpiceJet posts fifth straight quarterly loss
SpiceJet reported a Rs310.4 cr loss in second quarter, compared with a Rs559.49 cr loss in the year-ago period
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New Delhi: SpiceJet Ltd, India’s second largest budget airline, reported its fifth straight quarterly loss in the three months ended 30 September despite a fall in fuel prices.
The airline company reported a ₹ 310.4 crore loss in the September quarter, compared with a ₹ 559.49 crore loss in the year-earlier period.
The airline said its revenue was up 15% and expenses were down 2%, without disclosing rupee figures.
The loss came despite a significant fall in the price of fuel, which accounts for 40-45% of the costs of airlines, and the rupee’s appreciation against the US dollar, in which most expenses are denominated. Brent crude has fallen below $80 per barrel and the rupee has gained 0.25% since the beginning of this year.
The Kalanithi Maran-owned airline said it had a ₹ 75 crore one-off and restructuring expense in the quarter, without specifying details.
Consulting firm Capa had estimated SpiceJet would lose ₹ 300-360 crore in the September quarter. A poll of three analysts by Bloomberg had forecast a net loss of ₹ 206 crore.
Capa’s South Asia chief executive Kapil Kaul said on Friday the results were in line with the estimates.
“While there is a visible front end improvement at SpiceJet, continuing losses have created structural challenges to fund- raising and turnaround," Kaul said, estimating it needed $150-175 million in immediate funding.
SpiceJet will have to do “large scale downsizing" soon if it does not get “immediate" funding, Kaul said, referring to the fleet size of the airline.
SpiceJet has reduced its fleet size from 57 last year to about 46 this year.
Rival Jet Airways (India) Ltd posted its first profit in seven quarters, helped by the sale of its frequent flyer programme, but excluding the one-off gain, it remained in the red. The airline, founded by Naresh Goyal and part-owned by Etihad Airways PJSC, posted a net profit of 69.82 crore for the three months to September, against a net loss of 891.01 crore for the year-ago quarter, Mint reported on 8 November.
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