SpiceJet shares decline over 4 per cent after Q2 loss
Published On: Tuesday, November 15, 2022 | By: Team KnowMyStock
Shares of SpiceJet on Tuesday fell over 4 percent in morning trade after the firm reported a widening net loss to Rs 837.8 crore in the three months that ended September. The net loss of the company in the year-ago period was ₹570.5 crores. This is because of the cascading impact of a heavy increase in aviation turbine fuel expenses and foreign exchange losses due to the depreciating rupee combined with the effects of DGCA's order that made SpiceJet operate only 50% of its aircraft. Excluding the forex loss, the airline’s net loss stood at Rs 577.7 The consolidated revenue from operations rose by 45 percent to ₹1954.4 crores from ₹1345.4 crores in the year-ago period. For the same comparative period, operating expenses were Rs 2,942.6 crore as against Rs 2,100.4 crore,” the release said.
“The sector has been witness to prolonged challenges, however, the recent enhancement in the ECLGS limit to Rs. 1,500 crores by the Government, recognizing these challenges will go a long way in providing the much-needed stability to the sector. I am confident that SpiceJet will only grow stronger than ever with brand new planes, providing an unparalleled experience for its passengers," said Ajay Singh, Chairman, and Managing Director, of SpiceJet.“The high ATF prices and depreciating rupee continue to be a downer for the industry but the overall outlook for the sector remains positive. Having completed a series of settlements with most of our major partners and the upcoming hive‐off of our cargo and logistics arm, we expect ignificant improvements in our operating environment and are well placed to script a new phase of accelerated growth and meet the resurgent demand from passenger and cargo customers," he added.
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