Business Round-Up
SpiceJet narrows losses, seeks fresh capital
December 1st 2014
Indian low-cost carrier (LCC), SpiceJet, reported a net loss of 3.1 billion rupees (US$50.4 million) for the second quarter ended September 30, narrowed by 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 an average fare and [resulted] in higher average revenue per flight,” SpiceJet said. Ancillary revenue, “further catalyzed by higher loads”, increased 31.1% year-over-year to 1.4 billion rupees, the carrier said. 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 said it was in “advanced talks” for capital infusion though no deal materialised.
