SpiceJet flies into Rs 124 crore quarterly loss
The company's expenses climbed to Rs 1,782.95 crore in the latest June quarter. In the comparable period, the same stood at Rs 1,641.93 crore.
The carrier posted a loss of Rs 124.10 crore compared to a net profit of Rs 50.56 crore a year earlier.
Revenue fell a bit from a year earlier to Rs 1,678.59 crore due to a 9 per cent cut in capacity. The airline in March, returned five planes back to lessors.
The premature return of planes also led to penalties to the lessor which pulled down bottomlines. That and high cost of funding led to an additional cost of Rs 133 crore, it said in its press release.
SpiceJet had been leading price wars in the market, giving heavy discounts to fill its planes. That helped the airline clock load factors 81.4 per cent in June from 70.6 per cent in April.
But figures showed that wasn’t enough. SpiceJet flew a total of over 3 million passengers during the quarter. This means the airline made a revenue of Rs 5,637 per passenger and incurred a cost of Rs 5,943. That means it made a loss of Rs 306 on each seat sold.
SpiceJet’s chief operating officer Sanjiv Kapoor maintained that the airline is headed in the right direction.
"We have learnt that we should have gone ahead with our pricing strategy much earlier. We have also learnt that it's not possible to shrink an airline without incurring costs," he said.
He also said the correct measure for the performance of the airline is revenue per passenger kilometre—a product of load factors and yields—which went up 9.4 per cent.
SpiceJet had posted a Rs 1003.2 crore in the last financial year, up five times on year.