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SpiceJet reports biggest ever loss of Rs1,003 crore in 2013-14

LiveMint logoLiveMint 17-05-2014 Tarun Shukla

New Delhi:SpiceJet Ltd posted its biggest ever net loss of `1,003.24 crore for the fiscal year ended March. The loss widened five times from `191.07 crore a year ago.

In sum, Kalanithi Maran-owned SpiceJet lost an average of `2.75 crore every day that it flew in the country with a domestic market share of nearly 20%.

SpiceJet blamed the loss on the weak rupee and slower economic growth, which has limited growth in passenger traffic.

“The year ended 31 March 2014 was perhaps the most challenging period in Indian aviation history,” SpiceJet said in a statement, “The sharp depreciation of the Indian rupee during the quarter ended 30 September 2013 was unprecedented. Given the fact that over 75% of any Indian airline’s cost is influenced by the dollar, the effects of the exchange rates on a broad spectrum of cost heads were crippling.”

Coupled with a slowing economy and softening demand in a market where capacity continued to be added by the industry, SpiceJet is constrained to report an after-tax loss of `1,003 crore, the airline said.

The budget airline’s revenue increased 12% to `6,350.61 crore from a year ago of `5,699.78 crore. But expenses increased 24% to `7,303.68 crore from `5,893.36 crore earlier. The loss widened despite a 5% increase in the average air fare to `4,253 from `4,052 in the same period.

In the quarter ending March its loss rose to `322 crore from `186 year ago, it said.

The Indian domestic passenger market expanded 4% in calendar year 2013, according to Directortate General of Civil Aviation or DGCA.

India’s biggest listed airline Jet Airways(India) Ltd is set to announce its results on 27 May.

SpiceJet’s stock slipped 1.32% to `14.95 at BSE on Friday on a day the benchmark Sensex rose 0.9% to 24,121.74 points.

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