SpiceJet posts Rs 18cr loss in Aug quarter

Delhi-based low-cost carrier SpiceJet has posted Rs 17.81 crore loss for the quarter ended August 31, 2006 as against Rs 10.81 crore for the corresponding period last year. Total income however, rose to Rs 180.33 crore during the reporting quarter when compared with against Rs 66.26 crore for the quarter ended August 31, 2005.

"High fuel prices coupled with weak demand have resulted in loss for August quarter. However, this is the lowest loss figure compared to other airlines," Ajay Singh, director of SpiceJet, said.

The expenditure for the airline rose to Rs 194.68 crore for the quarter ended August 31 against Rs 75.37 crore for the corresponding quarter of previous year. The operating loss of this no-frills airline was at Rs 14.35 during the reporting quarter against Rs 9.10 crore for quarter ended August 31, 2005.

Singh said August quarter was the weakest for airlines in terms of demand. "We expect to break-even in the next quarter when our capacity will go up with increasing demand. Our business model is also intact," he told Business Standard.

He said the airline has always maintained that it will breakeven with 9 to 10 aircraft in its fleet.

"We will be adding two aircraft in October and one each in November and December, which will take us to total fleet of 10 aircraft," Singh added.