SpiceJet narrows net loss to Rs 163 cr
Improved yields, with strict cost control measures, have helped SpiceJet narrow its second quarter losses to Rs 163.5 crore (Rs 1.63 billion) as against Rs 240 crore (Rs 2.4 billion) in the same period last year.
Revenue grew 57 per cent to Rs 1,207 crore (Rs 12.07 billion) on the back of higher fares and more optimal utilisation of fleet on high demand revenue generating routes. Revenue per passenger increased 37 per cent. The airline flies 48 planes, including 12 turboprop Bombardier Q400s and has a market share of 18.5 per cent, behind IndiGo, Jet Airways and Air India.
Fuel costs, interest and lease rentals increased but an increase in other income (Rs 11 crore) and non-operating income (Rs 28 crore) helped the airline to boost revenue and contain losses.
"Improved yields, coupled with effective cost controls, helped the company perform better in what is always been a weak quarter for the airline business. Increase in number of international operations and improved fleet management helped us to deliver better numbers for the quarter. Fuel costs and weakened rupee continue to be a cause of worry for aviation sector..but we hope to see better days in the near future,'' said chief executive officer Neil Mills.
On the net profit level the airline fell short of expectations. ICICI Securities had estimated the airline to post a modest net loss of Rs 19.6 crore this quarter on the back of higher revenue and yield improvements. Centre for Asia Pacific's estimate was closer to the actual. CAPA estimated that the airline to post losses of $25-28 million (Rs 132crore -Rs 148 crore).
In its recent research report CAPA had said the losses will increase the funding challenges for the airline.