SpiceJet has reported a net loss of ₹275 crore for October-December 2014, higher than the ₹172-crore loss it posted a year ago.
In a statement, the airline said excluding one-off and exceptional items that include maintenance reserves write-offs, unproductive lease rentals and provision for impact of fleet reductions, and early contract termination, the company would have achieved a net profit of ₹20 crore.
The unaudited financial results were reviewed by the audit committee and approved by the Board at a meeting held on Thursday and have been subjected to limited review by the company auditors, the statement added. During the December quarter, the airline spent ₹172.52 crore as redelivery cost, including ₹101.65 crore relating to redelivery to the lessors of 14 Boeing aircraft that have been retired from commercial use.
In addition, the carrier also paid ₹70.87 crore for three aircraft that were retired ahead of schedule.
“The last quarter was extremely challenging for the airline as legacy issues, accumulated losses and delays in expected and required re-capitalisation eventually led to aircraft fleet reductions and consequent cancellation of flights in what is traditionally one of the best quarters of the year,” Sanjiv Kapoor, Chief Operating Officer of SpiceJet, said.
On a year-on-year basis, capacity was down 31 per cent, revenue was lower by 27 per cent and costs fell 20 per cent during the last quarter.
Commenting on the results, Kiran Koteshwar, Chief Financial Officer, said excluding one-off and exceptional costs, the company would have achieved a profit of ₹20 crore for the quarter, even with flight cancellations and the impact on revenues.
In the notes to the results, the airline has said the company incurred losses of ₹275.02 crore for the December quarter and had accumulated losses of ₹3233.32 crore against shareholder funds of ₹1597.78 crore.
“As of this date, the company’s total liabilities exceeded total assets by ₹1635.53 crore,” the statement said.