Budget carrier SpiceJet on Monday narrowed losses by 31.7% during the July-September quarter, benefiting from massive cuts in capacity by rival Kingfisher Airlines.
The company posted a loss of Rs 164 crore during the quarter compared with a loss of Rs 240 crore in the year-ago period.
However, the Kalanithi Maran-promoted carrier battled rising fuel prices and other operating expenses during the quarter. International crude prices, which fell considerably during the previous quarter, firmed up and threatened to get closer to its earlierhighs.
The airline's net sales jump 57% at Rs 1,207 crore during the quarter on the back of a 37% rise in average revenue per passenger. Load factors that are traditionally low during the said quarter dropped at 66.3% compared to 67.2% last year.
During the quarter, SpiceJet saw a 16% jump in passenger traffic and a 48% surge in number of departures.
Meanwhile, accumulated losses at the carrier have fully eroded the net worth of the company as on September 30.
The company's ability to operate on a "going concern" basis is "significantly" dependent on establishing continued profitable operations and raising cash to meet short- and long-term obligations the auditors said in a review report to the company.