SpiceJet posts Rs 39.26 cr Q3 loss

Budget airline SpiceJet on Monday posteda loss of Rs 39.26 crore for the quarter ended December 31, 2011, due toescalating ATF prices and increase in the US dollar rates.

The air carrier had a profit of Rs 94.44 crore for thecomparable period last fiscal, it said in a filing to the BSE.

"... During the quarter ended December 31, 2011, wewere able to realise major gains in market share, improve the revenue mix andachieve significant cost savings aided by a relentless drive to boostoperational efficiencies".

"Accordingly, our losses at the Profit Before Tax (PBT)level fell by more than Rs 200 crore as compared to the immediately precedingquarter. But for escalating ATF prices and abnormal increase in the US Dollarrates the financial performance could have been much better this quarter,"SpiceJet Chief Executive Officer Neil Mills said.

The December quarters loss has narrowed from Rs 240 crorethat the Kalanithi Maran-led airline had reported during the second quarterended September 30, 2011.

Further, during the third quarter, the company's revenueincreased by 41 per cent to Rs 1,175 crore from Rs 831 crore of thecorresponding quarter a year ago.

The company said aircraft fuel expenses were 90 per centhigher than the same period last year and fuel cost as a proportion constituted50 per cent of the total revenue in the current quarter compared to 37 per centin the same quarter of the previous year.

"Increased cost of crude oil plus 24 per cent tax onATF is continuing to impact the Indian civil aviation sector veryadversely," the company said.

It, however, added the outlook for the industry isconsiderably better now with recent media reports indicating that aliberalisation of FDI in the sector may be on the cards.