SpiceJet has reported a loss of Rs 310.4 crore in the second quarter, which is 45 per cent less than the Rs 559.5 crore loss that it reported during the same quarter in the previous year.
Explaining the results, the airline in a statement said that there was a positive impact of the year-on-year improvement in exchange rate and fuel prices which were Rs 29 crore. The statement adds that total revenues were up 15 per cent while expenses were down 2 per cent during the second quarter. The statement further adds that the second quarter of this year did not have the benefit of recently introduced reduction in prices of aviation turbine fuel that came into effect in October and November 2014.
The airline claims that the results clearly indicate that its market stimulation efforts are driving not just higher loads, but higher unit revenue also.
``Our continued focus on ancillary revenues are showing substantial results with an Increase of 31per cent year on year. As a result, SpiceJet’s revenue increased 15 per cent year-over-year, well ahead of capacity increase of 7 per cent,” the statement adds.
A comment from the Management states that the latest results clearly demonstrate the positive impact of the airline’s strategy, which is focused on maximising asset and capacity utilisation thereby maximising revenues and absorbing fixed costs at a faster rate. The airline’s Management believes that there is still further significant potential for both improving revenues and reducing costs. The improved performance further demonstrates that the turnaround effort, which is still work-in-progress, has gained momentum during the quarter, the statement says.
While welcoming the reduction in ATF prices which account for 40-45 per cent of the operating costs of a domestic airline, SpiceJet has also called for looking at reducing the airport costs within the country.