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SpiceJet posts ₹38 cr. loss on fuel prices

Falling rupee adds to carrier’s woes

August 14, 2018 09:46 pm | Updated 09:47 pm IST - NEW DELHI

India's SpiceJet aircrafts prepare for landing and take-off at the airport in Mumbai in this July 15, 2008 file photo. Loss-making carriers Jet Airways and SpiceJet are in talks with Abu Dhabi's Etihad Airways and Malaysia's AirAsia Bhd, respectively, to sell minority stakes, a government source said. Any deal would be the first since India changed its rules in September 2012 to allow foreign carriers to buy stakes of up to 49 percent in local airlines, which have been battered by fierce competition and high operating costs.    REUTERS/Punit Paranjpe/Files (INDIA - Tags: TRANSPORT BUSINESS)

India's SpiceJet aircrafts prepare for landing and take-off at the airport in Mumbai in this July 15, 2008 file photo. Loss-making carriers Jet Airways and SpiceJet are in talks with Abu Dhabi's Etihad Airways and Malaysia's AirAsia Bhd, respectively, to sell minority stakes, a government source said. Any deal would be the first since India changed its rules in September 2012 to allow foreign carriers to buy stakes of up to 49 percent in local airlines, which have been battered by fierce competition and high operating costs. REUTERS/Punit Paranjpe/Files (INDIA - Tags: TRANSPORT BUSINESS)

SpiceJet recorded a loss of ₹38 crore in the quarter ended June due to an increase in fuel prices, fall in rupee and an arbitration amount paid by the airline.

The airline had registered a profit of ₹175.2 crore in the corresponding period last year. SpiceJet earned a total income of ₹2,270 crore in the quarter as compared with ₹1,886.3 crore in the same quarter last year.

Arbitration amount paid

Expenses were ₹2,245.4 crore compared with ₹1,711 crore. However, an arbitration award of ₹63.5 crore, among other factors, led to the airline incurring a loss of ₹38.1 crore.

Income per available seat kilometres (ASKM) grew 6% due to an increase in passenger load factor, average fares and ancillary revenue, according to a statement.

The airline added that operating expenses per ASKM rose 15% on account of a 34% increase in aviation turbine fuel, resulting in fuel expenses rising from ₹279.6 crore in the quarter from ₹230.9 crore a year earlier.

A 4% increase in exchange rate over the past one year also took its toll on the airline’s financials.

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