SpiceJet reports reduction in losses by 45% to Rs 310.40 crore

NEW DELHI: Kalanithi Maran-promoted low-cost carrier SpiceJet has reported reduction in losses by 45% to Rs 310.40 crore during the second quarter of the current fiscal compared to a loss of Rs 559.50 crore during the same period last year.

The airline said that the improved numbers were on the back of on the back of increase in revenues during the quarter, which were up by 15% compared to the same period last year and expenses that were down by 2%.

SpiceJet, under the new management, has been offering a large number of discount offerings, which have been in the range of over 20 since the beginning of this calendar year.

On the back of these discount offerings, load factor were up 19% and the Revenue per Available Seat Km were up 12% compared to the second quarter of the last fiscal.

The airline also been able to reduce its Cost per Available Seat Km by 7% during the quarter, compared to the same period last year. The management credits the market stimulating efforts for the improved results during the quarter.

“The revenue results above clearly indicate that our market stimulation efforts are driving not just higher loads, but higher unit revenue (RASK) as well; additionally our continued focus on ancillary revenues are showing substantial results with an increase 31% YoY. As a result, SpiceJet’s revenue increased 15% year-over- year, well ahead of capacity increase of 7%,” spiceJet said in its release.

The release added that SpiceJet’s market stimulation efforts have had a positive impact on the travel industry as a whole by helping increase demand to fill seats that would otherwise go empty. This has benefitting not just the airline through incremental revenue, but also customers who are getting much more affordable fares if they are willing to book early, and for all other players in the travel value chain due to the increased volume of travel.