BIZ-RESULTS-SPICEJET

SpiceJet posts net loss of Rs 38.06 cr in Jun qtr

Mumbai, Aug 14 (PTI) Budget carrier SpiceJet posted a

net loss of Rs 38.06 crore in June quarter, on higher fuel

cost, weak rupee and a one-time provisioning of Rs 63.5 crore.

The Gurugram-based no-frills airline had posted a net

profit of Rs 175.2 crore in the same period last year.

Its net income rose 20 per cent to 2,277.80 crore in

the reporting quarter, compared with Rs 1,886.30 crore in the

year-ago period, the airline said in a regulatory filing.

SpiceJet is the second domestic carrier to have

announced earnings for June quarter so far. Earlier rival

IndiGo also reported a whopping 97 per cent erosion in net

profit to Rs 27.8 crore, from 811.10 crore in Q1 FY18.

The third listed carrier, Jet Airways, has deferred

its June quarter earnings indefinitely amid liquidity crunch.

SpiceJet's fuel bill rose to Rs 812.40 crore during

the quarter, against Rs 534,30 crore in the period year-ago.

The company has taken a provision of Rs 63.5 crore as

an exceptional item on account of an arbitration award that

cited interest payable of Rs 92.5 crore and interest

receivable of Rs 29 crore, it said in a release.

With this one-time provision, the airline has now

fully provided for the maximum amount that may be payable

under the arbitration award, it added.

"SpiceJet has delivered yet another operational

profitable quarter despite surging oil prices and a weak

rupee. As we start inducting the new fuel-efficient B737 MAX

and the Bombardier Q400, we will be able to significantly

reduce our overall costs even as we aggressively expand our

network both in India and overseas," said Ajay Singh,

chairman, SpiceJet.

Capacity during the reporting quarter increased by 14

per cent, while the growth in passenger yields went up by four

per cent, the company said.

Besides, the airline achieved a record domestic load

factor of 94.53 per cent during the period, it added.

The airline's stocks ended 0.34 per cent lower at Rs

89.10 apiece on the BSE today, against 0.55 per cent rise in

the benchmark.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)