Budget carrier SpiceJet on Friday reported a first quarter (April-June, 2011-12) loss of Rs 72 crore against Rs 55 crore net profits earned during the same quarter last fiscal.
Commenting on the first quarter loss, the company said, “The sudden spurt in capacity addition combined with irrational competitive pricing by the larger airlines resulted in a challenging operating environment. Additionally, steep increase in fuel price also made the cost environment adverse.”
The loss was reported despite an increase in revenue earned from each passenger flown by the airline. During the latest quarter, the airline reported that yield per passenger was at Rs 3,472 against Rs 3,663 in the previous quarter. This helped the company increase its revenue from operations by 32 per cent.