NEW DELHI: A 55 per cent rise in total expenditure dented the performance of SpiceJet in the second quarter of the current financial year. The private carrier reported a consolidated net loss of Rs 461.22 crore in the seasonally weak quarter that ended on September 30, 2019, compared to a net loss of Rs 382.71 crore a year ago.
“With the industry’s growth rate slowing down in the past few months, the impact is evident on the bottom line. We, however, remain optimistic that the sector will regain the lost momentum as the inherent demand remains very strong,” said Ajay Singh, chairman and managing director, SpiceJet.
Of its net loss, the airline attributed a loss of Rs 180.3 crore to the adoption of newer accounting standard IND-AS116, without which its loss would have stood at Rs 282.3 crore. The domestic carrier’s total expenditure jumped to Rs 3,537.48 crore in the September quarter from Rs 2,286.65 crore in Q2 FY19. Fuel expenses jumped 37.51 per cent to Rs 1,162.09.
SpiceJet said its grounded Boeing 737 MAX planes will likely return to service in January 2020, as indicated by manufacturer Boeing.
The carrier claimed that it continues to incur various costs and losses with the global grounding of Boeing 737 MAX planes since mid-March this year, following two fatal crashes attributed to issues in the planes’ anti-stall system. SpiceJet is currently in the process of determining the costs and losses (including opportunity losses) incurred by the grounding of the planes and has initiated the process of seeking reimbursements from Boeing.
“The likely return to service of the 737 MAX early next year, as indicated by Boeing recently, would mean that SpiceJet has at its disposal more than 25 brand new planes and we look forward to it. The return of the 737 MAX will provide a huge boost to our operations and we are confident that with the rigorous scrutiny, the MAX will be one of the safest aeroplanes ever to fly,” Singh said.