Financial Round Up
SpiceJet narrows losses, seeks fresh capital
December 2nd 2014
Indian low-cost carrier (LCC) SpiceJet reported a net loss of 3.1 billion rupees ($50.4 million) for the second quarter ended September 30, narrowed 45% from a loss of 5.6 billion rupees in the same period a year earlier. Load factor increased 13.3% to 81.9%. Read More »
Chennai-based SpiceJet significantly lowered its advance-purchase fares during the July – September quarter, promoting several all-in one-way fares for as low as 1,999 rupees ($33); subsequent passenger traffic growth and higher loads proved to be a boon. “The incremental revenue from increased loads significantly [exceeded] the impact of [the] decrease in average fare and [resulted] in higher average revenue per flight and per ASK,” SpiceJet said. Ancillary revenue, “further catalyzed by higher loads,” increased 31.1% year-over-year to 1.4 billion rupees, the carrier reported.
In a regulatory filing last week, SpiceJet said it was in "exploratory and preliminary stage" talks with investors about raising fresh capital. Back in May it had said that it was in “advanced talks” for capital infusion though no deal materialised.
