India's SpiceJet records loss of £4.27 million in Q1

India’s low cost budget carrier SpiceJet recorded a net loss of 4.27 million GBP in the first quarter (Q1) of the financial year (FY) 2018-19 following depreciation of Indian Rupee and steep rise in fuel costs.

The airline had reported a net profit of 19.64 million GBP during the same period last year, said the company in a regulatory filing.

Net income rose 20 percent to 255.36 million GBP in the reporting quarter from 211.47 million GBP in April-June period last year.

SpiceJet is the second domestic airline to release its financial data for the quarter ended in June after IndiGo which recorded a 97 per cent dip in its net profit to 3.12 million GBP from 90.93 million GBP recorded during the same period year ago. Fuel expenses of the company moved up and reached 91.08 million GBP from 59.90 million GBP reported in June 2017.

The capacity of the company during the last quarter raised 14 per cent, while growth in passenger returns moved up by 4 per cent, the airline highlighted. The company has also reached a record domestic load factor of 94.5 per cent in the last quarter.

“In terms of operational parameters, SpiceJet had the best passenger load factor amongst all airlines in the country during the quarter. The average domestic load factor for the quarter was 94.53 per cent. For 39 months in a row, SpiceJet has flown with the highest load factors in the Indian aviation market and for 38 months in a row the loads have been in excess of 90%, a feat unparalleled globally,” the company stated in a release.

Ajay Singh, Chairman and Managing Director, SpiceJet in a release said, “SpiceJet has delivered yet another operationally profitable quarter despite surging oil prices and a weak rupee. As we start inducting the new fuel-efficient B737 MAX and the Bombardier Q400, we will be able to significantly reduce our overall costs even as we aggressively expand our network both in India and overseas. We are confident that our operating model is robust to deal with this current unfavorable macro-economic headwinds.”