SpiceJet posts net loss of Rs 38.06 crore in June quarter

Mumbai: 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 percent 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 percent 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 percent, while the growth in passenger yields went up by four percent, the company said.

Besides, the airline achieved a record domestic load factor of 94.53 percent during the period, it added.

The airline's stocks ended 0.34 percent lower at Rs 89.10 apiece on the BSE today, against 0.55 percent rise in the benchmark.