Budget airline SpiceJet has reported a net loss of Rs.1,003 crore for the year ended 2013-14, its biggest-ever annual net loss, as compared to a net loss of Rs.191 crore in 2012-13.
For the year ended March 31, 2012, the airline had reported a net loss of Rs.606 crore while in the previous two years it had reported net profit of Rs.101 crore and Rs.61 crore, respectively.
“The year ended March 31, 2014, was perhaps the most challenging period in Indian aviation history. The sharp depreciation of the rupee during the quarter ended September 30, 2013, was unprecedented. Given the fact that over 75 per cent of any Indian airline’s cost is influenced by the U.S. dollar, the effects of the exchange rate on a broad spectrum of cost heads were crippling,” SpiceJet said in a statement.
SpiceJet said a slowing economy and softening of demand in a market where industry players continued to add capacity contributed to the losses. The company’s revenue increased by 12 per cent and passenger yields by 5 per cent.
Fourth quarterFor the fourth quarter ended March 31, 2014, SpiceJet reported a net loss of Rs.321.5 crore compared to a net loss of Rs.186 crore in the year ago period. Revenue increased by 8 per cent and passenger yield by 17 per cent.
SpiceJet said its market stimulation and revenue management approach in the latest quarter had helped in the increase of year-over-year RASK (revenue per available seat kilometer) despite adverse market conditions.
