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Low-cost carrier SpiceJet has posted a net loss of Rs 186 crore for the quarter ended March 31, 2013, against a Rs 249-crore loss recorded in the comparable previous year quarter. The loss comes despite a 31 per cent growth in revenues to Rs 1,456 crore, compared with Rs 1,113 crore for the quarter ended March 31, 2012.
In the third quarter ended December 31, 2012, the company had posted a net profit of Rs 102 crore.
In its regulatory filing, SpiceJet has attributed the loss to the continued weakness of the Indian rupee, high fuel prices and a significant tax burden “which hurt the entire domestic aviation sector”.
Quoting its CEO, Neil Mills, it says, “The past 12 months have continued to be difficult and the Indian aviation industry witnessed increasing cost challenges, particularly relating to airport charges as well as the adverse impact of the weakness of the rupee. We continue to be confident of the future, particularly as we have launched numerous international routes and this will improve the mix and performance in the future.”
Traffic up
SpiceJet’s passenger traffic in the quarter grew 20 per cent, outperforming the domestic industry passenger growth, the company said. “The increase in fares was inadequate to fully absorb the impact of higher costs of operation,” it added.
The average passenger yields in the March quarter increased eight per cent compared with the corresponding quarter a year-ago. Load factor during the quarter under consideration was 76 per cent, against 74 per cent in the same period last year.
SpiceJet’s market share in the quarter increased to 20.4 per cent from 17.1 per cent in March 2012, the announcement says.
For the full year, the airline posted a net loss of Rs 191 crore (Rs 605 crore). Passenger yields went up 23 per cent to Rs 4,052 during the year from Rs 3,293 crore last year. Revenue from operations went up 43 per cent to Rs 5,714 crore (Rs 3,997 crore).
Our Delhi Bureau adds: Terming SpiceJet results as “disappointing", the Chief Executive Officer, Centre for Asia Pacific Aviation, Kapil Kaul, said the airline’s financial position will weaken further and increase pressure significantly for this fiscal. The latest results are also likely to impact its plans to raise capital.
ravikumar.r@thehindu.co.in
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