SpiceJet posts quarterly loss on jet fuel prices

New Delhi: Low-cost carrier SpiceJet Ltd posted a quarterly loss, hurt by more than 61 percent jump in domestic jet fuel prices, but said capacity reduction and softening crude oil will result in better revenue realisation.
Indian airline industry has fallen on hard times as monthly fare hikes on soaring jet fuel prices, which make up 45 percent of an airline's operating costs, have resulted in a fall in passenger traffic leading to industry-wide capacity reduction.
India has set up a committee to recommend measures to help the domestic airline sector deal with losses that may double to nearly $2 billion in 2008/09. SpiceJet, which has a tenth of India's domestic airline market, reported April-June quarter net loss of 1.02 billion rupees. It excludes a loss of 272 million rupees on account of restatement of forex debt, it said in a statement issued late Friday evening.
It did not provide year ago numbers. SpiceJet, which has a fleet of 15 Boeing aircraft, reported a net profit of Rs 185.3 million in the year ago quarter, Bombay Stock Exchange website showed. Operating revenue for the quarter rose more than 72 per cent to Rs 4.57 billion.
30/08/08 Reuters/Economic Times

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Categories: SpiceJet Aug 2008