Low-cost carrier SpiceJet Ltd, based in Gurugram, reported its second straight quarterly loss today. A combination of rising oil prices, high fuel taxes, a weak rupee, low fares and intense competition made matters worse. Standalone net loss, which excludes results of units SpiceJet Merchandise and SpiceJet Technic, was 3.89 billion rupees ($53.90 million) in the quarter ended Sept. 30, compared with a profit of 1.05 billion rupees a year earlier. See also : Spicejet offers Rs 599 fares.
Aircraft fuel expenses rose 55.8 percent to 8.45 billion rupees. Fuel prices especially have slashed profits in the world’s fastest-growing aviation market which is recording a 20 percent annual passenger growth.
Spicejet’s competitors Jet Airways (India) Ltd and InterGlobe Aviation Ltd, which owns the country’s largest domestic carrier by market share – IndiGo, have also reported losses for the September quarter.
SpiceJet, however, is optimistic. It said its results were expected to pick up over the next two-three quarters and that it would take deliveries of 10 Boeing 737 MAX aircraft in September-December. Shares of SpiceJet were up 3.50 percent, while the broader Mumbai market was almost flat.