The Economic Times daily newspaper is available online now.

    SpiceJet Q2 Results: Loss widens to Rs 8.38 billion as as fuel costs soar

    Synopsis

    SpiceJet has had trouble cashing in on a rebound in air travel from pandemic lows, as India's aviation regulator in July halved the airline's approved fleet due to a string of mid-air safety lapses.

    India's SpiceJet quarterly loss widens as fuel costs soarReuters

    INSIGHTS

    Read Stock Insights by ET for a quick analysis

    PEER COMPANIES

    Explore Now
    India's SpiceJet Ltd on Monday reported a bigger quarterly loss as the embattled low-cost carrier wrestled with a surge in fuel costs and a depreciating rupee.

    Losses widened to 8.38 billion Indian rupees ($103.25 million) for the three months ended Sept. 30, from 5.62 billion rupees a year earlier, the airline said in an exchange filing.

    Its aviation turbine fuel costs almost doubled to 12.26 billion rupees.

    SpiceJet has had trouble cashing in on a rebound in air travel from pandemic lows, as India's aviation regulator in July halved the airline's approved fleet due to a string of mid-air safety lapses.

    Last month, Reuters partner ANI reported that the agency had lifted its restrictions on SpiceJet's operations, allowing it to operate at full capacity from Oct. 30.

    The company is also grappling with stiff competition, losing market share to InterGlobe Aviation-owned IndiGo, new entrant Akasa Air and the Tata Group-backed Vistara.

    SpiceJet's share of domestic passenger market dropped to 7.7% in the September quarter from 9.7% in the previous three months, according to data from the Directorate General of Civil Aviation. At the same time, IndiGo expanded share to 58% from 56.3%.

    Earlier this month, IndiGo also saw its quarterly losses widen on a threefold jump in fuel costs and foreign exchange losses.

    SpiceJet's total revenue from operations rose 45.4% to 19.53 billion rupees.

    Its yield, a key profitability metric, rose 11%, which led to a 109% surge in passenger revenue. Load factor, or the passenger-carrying capacity being utilised, was at 85% in the quarter, an increase of 8% year-on-year.

    ($1 = 81.1620 Indian rupees)



    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more


    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
    The Economic Times

    Stories you might be interested in