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's CEO said, "Our losses at PBT level fell by around Rs 200 crore but due to high taxes on fuel and a weak rupee, we reported losses." Mills further said that despite having good volumes, the airline did not have pricing power due to stiff competition.
Shares of the company rose 5% to Rs 25.30 post the result announcement.
