Low-cost airline SpiceJet on Monday reported a net loss of ₹838 crore for the period ended September 30, 2022. Losses widened as compared to the year-ago-period when it reported a net loss of ₹562 crore.
Losses stood at ₹578 crore, excluding forex adjustment, and business was hit by record high fuel prices and a depreciating rupee in the traditionally weak quarter, the airline said in a statement.
Revenue was at ₹1,953 crore, up 45 per cent. Operating expenses stood at ₹2,943 crore, up 40 per cent.
For the quarter under review, ATF prices increased 87 per cent.
Prolonged challenges
According to Ajay Singh, Chairman and Managing Director, SpiceJet, the sector has been witness to prolonged challenges. However, the recent enhancement in the ECLGS limit to ₹1,500 crore by the Government will go a long way in providing much needed stability.
“A near-to-normal business environment and an upturn in business and leisure travel, coupled with government aid, are giving hopes to positivity. The high ATF prices and depreciating rupee continue to be a downer for the industry. But overall outlook for the sector remains positive. Having completed a series of settlements with most of our major partners and the upcoming hive-off of our cargo and logistics arm, we expect significant improvements in our operating environment,” he said.
The airline launched 12 new routes and operated 215 charter flights in the quarter.
SpiceXpress, the logistics division of the airline, reported a revenue of ₹206 crore and a net profit of ₹21 crore, the company said in a statement. Profit margin increased to 10 per cent. SpiceXpress transported 27,674.98 tonnes of cargo in the quarter under review.