SpiceJet Q2 Results: Loss widens to Rs 838 crore as fuel costs soar

SpiceJet on Monday reported widening of net loss to Rs 837.8 crore in the three months ended September as record fuel prices and depreciating rupee caused turbulence for the budget carrier. Excluding the forex loss, the airline's net loss stood at Rs 577.7 crore in the latest quarter under review.

In the year-ago period, SpiceJet posted a net loss of Rs 561.7 crore. During that period, including a forex gain, the figure was Rs 568.7 crore, according to a release.

The airline said business in the second quarter of the current fiscal was "hit by record high fuel prices, depreciating rupee in the traditionally weak quarter".

"Total revenue for the reported quarter was Rs 2,104.7 crore as against Rs 1,538.7 crore in the same quarter of the previous year. For the same comparative period, operating expenses were Rs 2,942.6 crore as against Rs 2,100.4 crore," the release said.

In the latest September quarter, SpiceXpress, the airline's cargo subsidiary, reported a net profit of Rs 21.2 crore on revenues of Rs 206.1 crore.

SpiceJet Chairman and Managing Director Ajay Singh said that high ATF prices and depreciating rupee continue to be a downer for the industry but the overall outlook for the sector remains positive.

"A near to normal business environment and an upturn in business and leisure travel coupled with government aid are giving hope to positivity. Having completed a series of settlements with most of our major partners and the upcoming hive-off of our cargo and logistics arm, we expect significant improvements in our operating environment...," he added.

According to Singh, the recent enhancement in the ECLGS limit to Rs 1,500 crore by the government, recognising these challenges will go a long way in providing the much needed stability to the sector.

ECLGS refers to Emergency Credit Line Guarantee Scheme.