Delhi-based low-cost carrier SpiceJet reported a first quarter loss of Rs 129.2 crore from a profit of Rs 18 crore a year earlier.
The consolidated figure included a loss of Rs 27.2 crore on account of restatement of forex debt. The net figure, excluding the loss on foreign exchange, was Rs 102 crore. Incidentally, the company’s profits of Rs 18 crore last year, were solely on account of foreign exchange gains. The losses were a result of higher fuel prices, which more than doubled in the quarter. This is despite the rise in average ticket price of 37 per cent and the rise in number of flights by 39 per cent.
Fuel cost rose to Rs 310.2 crore in the three months ended June 30 compared with Rs 133.7 crore a year earlier, accounting for 53 per cent and 46 per cent of its total expenditure, respectively.
Apart from the fuel bill, a rise in aircraft lease rental charges also drove the airline deeper into the red. Lease rentals in the quarter rose 65 per cent to Rs 82.5 crore.
SpiceJet increased its fleet size to 17 aircraft in the period from 11 during the corresponding period last year. The company, however, earned a profit of Rs 8.6 crore on sale and leaseback of one aircraft in this quarter.
“The losses of Rs 27.2 crore were on account of exchange rates impacting the foreign currency convertible bonds (FCCBs) worth $80 million. Though they do not affect the cash flow of the company, accounting standards say that these profits or losses have to be calculated every quarter. To put it simply, if the bonds were redeemed now, we would have incurred a loss of Rs 27.2 crore due to depreciation of the rupee,” said a company executive.