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The rising cost of aviation turbine fuel and the depreciation of the rupee has seen the Delhi-based low-cost airline SpiceJet post a net loss of ₹389.4 crore for the quarter ended September 30 this year. The airline had reported a profit of ₹105.3 crore in the same period previously.
In a statement, the airline said that it witnessed an “unexpected cost increase” of ₹396 crore in the quarter, on account of fuel increase and currency depreciation.
The statement added that due to strong cost pressure faced during this quarter, the company paid ₹272 crore on account of increase in ATF cost; ₹78 crore on account of the rupee depreciation and ₹46 crore on account of forex losses on its obligations compared with the second quarter of 2017.
For this quarter, SpiceJet’s total income was ₹1,910.3 crore as against ₹1,842 crore for the same quarter previously. For the same period, its expenses were at ₹2,299.7 crore as against ₹1,736.7 crore previously.
The airline reported EBITDA (earnings before interest, taxes, depreciation, amortisation) before exceptional items at a loss of ₹310.4 crore as against ₹168 crore profit previously. EBITDAR (earnings before interest, taxes, depreciation, amortisation rent/restructuring) before exceptional items were at a loss of ₹32.7 crore profit as against ₹409.6 crore previously .
Ajay Singh, Chairman and Managing Director SpiceJet said that while it had been a challenging quarter, SpiceJet had managed to handle the headwinds thanks to “our aggressive network expansion, emphasis on cost reduction, induction of fuel efficient aircraft.”
He added, “ With higher fares, the fall in global crude prices and currency appreciation we expect the operating environment to improve significantly.”
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