SpiceJet Q1 loss at Rs 71.96 cr on costly fuel

Net income of the company, however, rose 31.78 per cent to Rs 932.85 crore during the quarter ended June 2011, compared to Rs 707.86 crore in the same quarter last year.

Low-cost carrier SpiceJet on Friday reported a net loss of Rs 71.96 crore for the first quarter ended June 30, mainly due to increased fuel costs. The company had reported a net profit of Rs 55.2 crore in the same quarter a year ago.

Net income of the company, however, rose 31.78 per cent during the quarter under review Rs 932.85 crore, compared to Rs 707.86 crore it had reported in the corresponding quarter of last financial year, SpiceJet said in a filing to the Bombay Stock Exchange.

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The costs on air turbine fuel of the company, during the quarter, increased by about 95 per cent at Rs 505.17 crore vis-a-vis Rs 259.13 crore of Q1 of 2010-11, the filing added.

In a separate statement, the no-frills carrier said that "first quarter of FY12 also saw a steep increase in fuel price over Q1 of FY11, which made the cost environment adverse. Despite these challenges, SpiceJet increased its domestic market-share from 13 per cent to 14 per cent".

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It added that fuel prices during the April-June quarter were 43 per cent higher than same period last year and fuel cost constituted 53 per cent of the total costs during the quarter under review.

Commenting on the results, SpiceJet's CEO Neil Mills said: "During these three months we have firmed up our future expansion plans and have been preparing the ground for the rapid expansion planned over the next 3 years. We have recently received requisite approvals for the import of Bombardier Q-400 aircraft backed by financing from Export Credit of Canada. With this we are glad to announce that we have today opened our bookings for our Q400 operations".

Making Hyderabad as its base for the Bombardier Q-400 aircraft fleet, the low-cost carrier plans to connect it to tier-II and tier-III cities like Aurangabad, Bhopal, Indore, Mangalore, Rajahmundry, Tirupati and Vijayawada.

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The all-inclusive inaugural fare on these routes begins from Rs 1,999 per person, the airline said in the statement. SpiceJet had placed an order for 30 such aircraft and is in the process of taking delivery of the first four aircraft during August, it added.

The Q400 NextGen turboprop aircraft can accommodate 78 passengers.

Scrips of the company on Friday settled at Rs 28.15 on the Bombay Stock Exchange, up 0.72 per cent from previous close.