New Delhi: Airline SpiceJet Ltd reported a record quarterly loss on Thursday, hit by high fuel prices and weaker rupee but said it expected its international expansion would help cut costs.
SpiceJet and rivals such as Jet Airways operate in a country where provincial taxes make jet fuel among the world's most expensive. They also have to contend with a rupee trading near a record low, raising costs which are mostly denominated in dollars.
India's fourth-biggest airline by domestic market share and controlled by billionaire Kalanithi Maran's Sun Group, added two more international routes last quarter, taking the total to 10.
"While these initiatives add to the pressure on margins due to the start-up costs involved in setting up a new station, the contributions from overseas flying will help in reducing costs through a better utilisation of the fleet," SpiceJet said in a statement.
07/11/13 Reuters/NDTV.com
To Read the News in full at Source, Click the Headline
SpiceJet and rivals such as Jet Airways operate in a country where provincial taxes make jet fuel among the world's most expensive. They also have to contend with a rupee trading near a record low, raising costs which are mostly denominated in dollars.
India's fourth-biggest airline by domestic market share and controlled by billionaire Kalanithi Maran's Sun Group, added two more international routes last quarter, taking the total to 10.
"While these initiatives add to the pressure on margins due to the start-up costs involved in setting up a new station, the contributions from overseas flying will help in reducing costs through a better utilisation of the fleet," SpiceJet said in a statement.
07/11/13 Reuters/NDTV.com
