Thursday, November 14, 2019

SpiceJet reports Rs 462-crore loss in Sep quarter on higher costs

New Delhi: SpiceJet on Wednesday reported a loss of Rs 462 crore for the September quarter, its first quarterly loss during the current financial year. This was on the back of higher costs during a seasonally weak quarter.
The numbers could havebeen worse, if the Rs 171-crore compensation from aircraft manufacturer Boeing wasn’t accounted for — a component that was contested by the airline’s auditor. SpiceJet has claimed compensation from Boeing for the grounding of the 737 Max. However, the process hasn’t been started by Boeing yet. The airline had claimed compensation of Rs 114 crore in the previous quarter, and is yet to receive the amount.

Boeing has announced a $4.9-billion compensation for the grounding. “What we are claiming is only partial compensation. In reality, the compensation amount would have been higher as I have suffered losses by being forced to fly old aircraft, paying airport charges, and crew salary for aircraft not being flown. The compensation amount is legitimate,” said SpiceJet Chief Financial Officer Kiran Koteshwar.

Despite improving yield,the numbers slipped into the red, hit by high maintenancecosts and lease rental. This was an outcome of the airline taking over old Jet Airways aircraft, in the absence of the 737 Max.
14/11/19 Arindam Majumder/Business Standard
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