Spicejet posts Q3 loss at Rs 39 cr on high fuel cost

Moneycontrol Bureau

High fuel prices and a weak rupee pushed SpiceJet into losses for the December quarter. The airline has posted a net loss of Rs 39.26 crore  versus a Rs 94.44 crore profit which it posted in the year--ago period. Sales, however, grew 41% to Rs 1,175 crore on the back of high passenger load factors.

While the aviation turbine fuel cost rose around 90% to Rs 592.30 crore year-on-year, aircraft lease rentals also grew 51% to Rs 160 crore. The airline said that even its staff cost went up nearly 50% to Rs 112 crore, hurting profitability.

Typically, December quarter is the strongest in terms of business for airlines. The airline registered a 29% growth in its passenger volumes during the quarter(y-o-y) but predatory pricing hurt its margins.
 
Neil Mills, the airline