New Delhi: SpiceJet, India's second-biggest budget carrier by market share, reduced its second-quarter losses by 32 percent, benefiting from massive cuts in capacity by rival Kingfisher Airlines.
The losses still reflect the fiercely competitive aviation industry, which lost a combined $2 billion last year. All but unlisted IndiGo lost money, hurt by high state taxes on jet fuel, expensive airports and regulatory uncertainty.
"Fuel costs and a weakened INR continue to be a cause of worry for the aviation sector," SPICEJET Chief Executive Neil Mills said in a statement.
Kingfisher has stopped flying since having its licence suspended last month because of safety concerns. Even before then the carrier operated only about a fifth of its aircraft, enabling rivals to push up fares.
SpiceJet said it lost 1.64 billion rupees in the three months to September 30, compared with a forecast loss of 961 million rupees and after a 2.4 billion rupee loss in the same period last year.
Accumulated losses were more than the company's net worth at September 30, its auditors said on Monday.
13/11/12 Reuters/Business Standard
To Read the News in full at Source, Click the Headline
The losses still reflect the fiercely competitive aviation industry, which lost a combined $2 billion last year. All but unlisted IndiGo lost money, hurt by high state taxes on jet fuel, expensive airports and regulatory uncertainty.
"Fuel costs and a weakened INR continue to be a cause of worry for the aviation sector," SPICEJET Chief Executive Neil Mills said in a statement.
Kingfisher has stopped flying since having its licence suspended last month because of safety concerns. Even before then the carrier operated only about a fifth of its aircraft, enabling rivals to push up fares.
SpiceJet said it lost 1.64 billion rupees in the three months to September 30, compared with a forecast loss of 961 million rupees and after a 2.4 billion rupee loss in the same period last year.
Accumulated losses were more than the company's net worth at September 30, its auditors said on Monday.
13/11/12 Reuters/Business Standard
