SpiceJet flies into red; posts ₹238 crore loss in June quarter mainly on higher costs

The budget carrier, which had been facing multiple headwinds, raked in a total income of ₹1,190.56 crore in the first quarter of the current financial year.

New Delhi: Flying into the red, SpiceJet on Friday reported a net loss of ₹238 crore for the three months ended June, saying expenses related to grounded aircraft and subdued leisure travel demand impacted the financials.

FILE PHOTO: A SpiceJet passenger aircraft taxis on the tarmac at Chhatrapati Shivaji International Airport in Mumbai. (REUTERS)

The budget carrier, which had been facing multiple headwinds, raked in a total income of ₹1,190.56 crore in the first quarter of the current financial year. The same stood at ₹2,067.21 crore in the same period a year ago, according to a regulatory filing.

In a statement, SpiceJet said the results were significantly impacted by the geopolitical situation with a neighbouring country and airspace restrictions in key markets, which led to subdued leisure travel demand.

"The delay in returning grounded aircraft to service, owing to global supply chain disruptions and engine overhaul challenges, further compounded the situation," it added.

The airline recorded a net loss of ₹238 crore in the June quarter, whereas it had a profit of ₹150 crore in the year-ago period.

He also said the airline is taking decisive steps to enhance fleet reliability, reduce costs, and expand the network.

Among other efforts, the airline is having discussions for taking aircraft on damp-lease arrangements to strengthen its network reliability.

Generally, in a damp lease, the lessor provides the aircraft, along with the maintenance, but not the crew and insurance.

According to the statement, net worth rose to ₹446 crore in the latest June quarter compared to a deficit of ₹2,398 crore in the year-ago period.

In July, SpiceJet had a domestic market share of 2 per cent, as per official data.