SpiceJet reports Q3 loss on high fuel costs & weak currency
The combination of higher fuel costs and forex losses pushed budget carrier SpiceJet Ltd into the red in the fiscal third quarter ended December 31, 2013.
Controlled by billionaire Kalanithi Maran-promoted Sun Group, SpiceJet, on Friday reported a net loss of Rs 1.73 billion (US$27.74M) for its October-December quarter. In the corresponding quarter of the previous year, the carrier had pocketed a net profit of Rs 1.02 billion.
The carrier suffered the loss despite a considerable increase in revenue. The carrier's revenue increased 14 per cent to Rs 17.96 billion on the back of a 10 per cent increase in passenger traffic.
But, yields from increased passenger traffic grew just 3 per cent year-on-year, which was not adequate to offset a rise in costs. Fuel costs jumped 9 per cent in the quarter under review, while the negative impact of a weaker local currency was Rs 630 million.
For the quarter ended September, the carrier had reported a record $90 million loss. SpiceJet's bigger rival carrier Jet Airways reported its fourth consecutive quarterly loss last week.
Meanwhile, sources have revealed that SpiceJet is purchasing nearly 40 planes from US plane maker Boeing Co in a deal worth around $4 billion. The carrier has not confirmed the aircraft order yet.