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SpiceJet’s posts a loss in Q2 on account of rising fuel costs and Rupee depreciation
Records Highest load factor in July-September quarter
“New aircraft, fall in crude, currency appreciation augur brighter future”

For the Quarter ending September 2018

  • Capacity up by 6 %
  • Income up by 4%
  • Unexpected cost increase of about Rs 396 crore on account of fuel increase, currency depreciation
  • Net loss of INR 389.4 Crore

Key operating highlights

  • Registers record domestic load factor of 93.5%
  • Has clocked the highest PLF in Indian skies for a record 42 successive months
  • Launches dedicated air cargo services
  • Operates India’s first-ever BioJet Fuel powered flight
  • Announced ten new UDAN flights in the quarter

Growth strategy on track

  • Fleet size grows to 65 with the addition of 4 Boeing 737 MAX 8 & 2 90-seater Q400s
  • Operating 445 daily flights
  • Biggest regional operator with 25 daily UDAN flights

GURUGRAM, November 14, 2018: SpiceJet, the country’s favourite carrier, recorded a 4% rise in second quarter operational revenue to INR 1880.9 Crore as it added more destinations and expanded its fleet of passenger and freight aircraft.

Total income was INR 1,910.3 Crore for the reported quarter as against INR 1,842.0 Crore in the same quarter last year. For the same comparative period, expenses were INR 2,299.7 Crore as against INR 1,736.7 Crore; EBITDA before exceptional items were INR 310.4 Crore (loss) as against INR 168 Crore; EBITDAR before exceptional items were INR 32.7 Crore (loss) as against INR 409.6 Crore.

Expenses per ASKM increased by 25% on account of 48% increase in ATF and 10% increase in exchange rate. The carrier reported a net loss of INR 389.4 crore during July-September 2018 quarter on account of rising fuel costs and Rupee depreciation versus a profit of INR 105.3 crore in the same quarter a year ago.

As an impact of strong cost pressures faced during this quarter, the Company paid an amount of INR 272 crore on account of increase in cost of Aviation Turbine Fuel, INR 78 crore on account of Rupee depreciation and an amount of INR 46 crore on account of forex losses on its obligations as compared to Q2 2017. Revenue performance remained disciplined and fell by only 1% in spite of severe competition.

SpiceJet yet again excelled on operational parameters to report the highest passenger load factor amongst all airlines in the country all through the quarter. The average domestic load factor for the quarter was 93.5%. SpiceJet has recorded the industry’s highest load factor for 42 successive months.

The company is all set to take deliveries of 10 more Boeing 737 MAX aircraft in Q3 and up to 8 MAX aircraft have been planned for inductions in Q4 of FY2019. Further 4 Q400 aircraft shall be inducted during Q3FY 2019 and up to 4 Q400s are planned for inductions in Q4 of FY 2019. With the crude prices taking a fall in this quarter, the profitable performance is expected to pick up during the next 2-3 quarters.

Ajay Singh – Chairman and Managing Director, SpiceJet said, “While it has been a challenging quarter for the entire industry, SpiceJet has managed to handle the sector headwinds well thanks to our aggressive network expansion, emphasis on cost reduction, induction of fuel efficient aircraft and the undying competitive spirit of our employees.”

“SpiceJet has been on a spectacular growth journey and this quarter, in particular, has been very special for us. From inducting our new 737 MAX and Q400 planes to launching a dedicated air cargo service the foundation for our aggressive expansion while keeping the costs under check has been laid. With higher fares, the fall in global crude prices and currency appreciation we expect the operating environment to improve significantly.”

SpiceJet has begun inducting the fuel efficient Boeing 737 MAX 8 airplane from the mega order it signed with Boeing for up to 205 aircraft in 2017 worth $22 billion. The airline has also begun taking deliveries of the brand new 90-seater Q400 aircraft for which it was the launch customer. The new airplanes have been designed to dramatically reduce fuel and engineering costs, while cutting down on noise pollution and greenhouse gas emissions.

The quarter also witnessed the airline launch its dedicated air cargo services and inducting its first freighter aircraft.

In its endeavour to go green, SpiceJet, became the first and only airline to successfully conduct India’s first-ever BioJet fuel powered flight. Undertaking operations using a blend of 75% of aviation turbine fuel (ATF) and 25% of BioJet fuel, SpiceJet aims to potentially reduce carbon footprint by 15%.

Driving the national agenda of UDAN, SpiceJet, during the quarter, announced ten new UDAN flights and started operations on the Delhi-Kanpur sector. SpiceJet now operates 25 UDAN flights on the routes of Mumbai-Porbandar, Mumbai-Kandla-Mumbai, Hyderabad-Puducherry-Hyderabad, Jaipur-Jaisalmer-Jaipur, Chennai-Hubli-Chennai, Hyderabad- Hubli- Hyderabad, Delhi- Adampur- Delhi, and Delhi -Kanpur- Delhi, Kolkata – Pakyong - Kolkata, Delhi – Kishangarh - Delhi, Pakyong – Guwahati - Pakyong, Surat – Jaisalmer – Surat, and Ahmedabad Jaisalmer Ahmedabad.