Companies

SpiceJet posts Rs 39-cr loss on high fuel costs, weak rupee

Our Bureau New Delhi | Updated on November 15, 2017

spicejet





High fuel prices and unprecedented depreciation of the rupee has seen the low-cost airline SpiceJet post a net loss of Rs 39.26 crore in the quarter ended December 31, 2011.

The airline had posted a net profit of Rs 94.44 crore during the same period previously.

In a statement, the airline said that aircraft fuel expenses were 90 per cent higher in the last quarter than the same period previously.

Revenues rise

Revenues for the quarter ended December 31, 2011 increased 41 per cent to Rs 1,175 crore (Rs 831 crore) for the corresponding quarter a year ago. The airline also reported a 9.5 per cent increase in passenger yields at Rs 3,812 (Rs 3,482).

“During the quarter ended December 31 we were able to realise major gains in market share, improve revenue mix and achieve significant cost saving. Our losses at the profit before tax level fell by more than Rs 200 crore as compared to the immediate preceding quarter.

“But for escalating ATF prices and abnormal increase in the dollar rates the financial performance could have been much better this quarter,” the airline Chief Executive Officer, Mr Neil Mills, said.

New planes

Talking about the airline's fleet expansion plan, Mr Mills said that SpiceJet planned to induct eight Q 400 and between three to four Boeing 737 aircraft into its fleet by the next calendar year.

Mr Mills pointed out that the induction of the Q400 aircraft will help enhance air connectivity to tier II and tier III cities and towns.

> ashphadnis@thehindu.co.in

Published on February 06, 2012

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