Friday, November 16, 2018

Costly fuel, weak rupee take a toll on SpiceJet

New Delhi: Budget carrier SpiceJet has reported a net loss of Rs 389.37 crore in the July-September quarter of the current financial year. The company had posted a net profit of Rs 105.27 crore in the corresponding period of the previous financial year.“As an impact of strong cost pressures faced during this quarter, the company paid an amount of Rs 272 crore on account of increase in cost of Aviation Turbine Fuel (ATF), Rs 78 crore on account of rupee depreciation and an amount of `46 crore on account of forex losses on its obligations as compared to Q2FY2017. Revenue performance remained disciplined and fell by only 1 per cent in spite of severe competition,” said a SpiceJet statement on Wednesday.

The airline said that the average domestic load factor for the quarter was 93.5 per cent and it has recorded the industry’s highest load factor for 42 successive months.Moreover, SpiceJet is all set to take deliveries of 10 more Boeing 737 MAX aircraft in the December quarter and up to eight MAX aircraft have been planned for inductions in the fourth quarter of FY2019.
Further, four Q400 aircraft will be inducted during Q3FY2019 and up to four Q400s are planned for inductions in Q4FY2019. With the crude prices taking a fall in this quarter, the profitable performance is expected to pick up during the next two-three quarters, it said.
15/11/18 IBC World News