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Rediff News  All News  » Business » SpiceJet net loss widens to Rs 321 crore

SpiceJet net loss widens to Rs 321 crore

May 17, 2014 13:31 IST

Budget airline SpiceJet's net loss widened to Rs 321.51 crore for the quarter ended March 31, 2014.

The airline had posted net loss of Rs 185.71 crore during the same period of last fiscal year.

The total income from operations saw an increase of 8.38% for the fourth quarter, at Rs 1,589.61 crore as against Rs 1,466.74 crore for the same period of previous fiscal year.

The company expects demand growth in the industry during the financial year 2014-15.

During the financial year ended March 31, 2014, the net loss of the company widened to Rs 1,003 crore compard to a loss of Rs 191 crore during the previous fiscal year.

Total income from operations for the financial year ended March 31, 2014, grew by 11.51% to Rs 6,356.10 crore compared to Rs 5,699.78 crore for the same period of previous year.

"The year ended March 31, 2014 was perhaps the most challenging period in Indian aviation history. The sharp depreciation of the rupee during the quarter ended September 30 2013 was unprecedented. Given the fact that over 75% of any Indian airline's cost is influenced by the US Dollar, the effects of the exchange rates on a broad spectrum of cost heads were crippling," said the company statement.

These factors, coupled with a slowing economy and softening demand in a market where capacity continued to be added by the industry lead the company to register a loss during the financial year, it added.

There was a 6% decline in number of passengers during the three months ended March 31, 2014. For the full year, it reported a 6% growth in number of passengers.

BS Reporter in Chennai