Spicejet Q2 net loss at Rs 389.37 cr as high fuel cost, rupee fall take toll

New Delhi: Low-cost carrier SpiceJet Ltd on Wednesday reported a standalone net loss of Rs 389.37 crore in the second quarter ended 30 September, impacted by high fuel costs and rupee depreciation. The company had posted a net profit of Rs 105.27 crore in the same quarter last fiscal, Spicejet said in a regulatory filing. Net income from operations during the quarter under review stood at Rs 1,848.28 crore. It was at Rs 1,794.57 crore in the corresponding period of the previous fiscal. Total expenses during the second quarter were at Rs 2,299.67 crore as against Rs 1,736.7 crore in the year-ago period. [caption id=“attachment_5059291” align=“alignleft” width=“380”] Representative image. Reuters[/caption] “As an impact of strong cost pressures faced during this quarter, the company paid an amount of Rs 272 crore on account of increase in cost of aviation turbine fuel, Rs 78 crore on account of rupee depreciation and Rs 46 crore on account of forex losses on its obligations as compared to Q2 2017,” Spicejet said. Revenue performance, however, remained disciplined and fell by only 1 percent in spite of severe competition, it added. The carrier said it registered record domestic load factor of 93.5 percent in the second quarter, while its capacity was up by 6 percent. Commenting on the performance, SpiceJet Chairman and Managing Director Ajay Singh said, “While it has been a challenging quarter for the entire industry, SpiceJet has managed to handle the sector headwinds well thanks to our aggressive network expansion, emphasis on cost reduction, induction of fuel-efficient aircraft and the undying competitive spirit of our employees.” On the outlook, he said, “With higher fares, the fall in global crude prices and currency appreciation, we expect the operating environment to improve significantly.” Spicejet said it is all set to take deliveries of ten more Boeing 737 MAX aircraft in the third quarter, and up to eight MAX aircraft have been planned for inductions in the fourth quarter of the ongoing fiscal. Further, four Q400 aircraft shall be inducted during the third quarter FY19 and up to four Q400s are planned for inductions in the fourth quarter of the fiscal. With the crude prices on a decline this quarter, the profitable performance is expected to pick up during the next 2-3 quarters, the company said.