Low-cost carrier SpiceJet Ltd today reported a net loss of Rs 38.06 crore for the first quarter, on higher fuel cost, weak rupee and a one-time provisioning of Rs 63.5 crore. The Gurugram-based airline had posted a net profit of Rs 175.2 crore in the same period last year.
 
In a regulatory filing, the airline stated that its net income rose 20 per cent to 2,277.80 crore in the reporting quarter, compared with Rs 1,886.30 crore in the year-ago period.
 
For the same comparative period, expenses were Rs 2,245.4 crore as against Rs 1,711 crore; EBITDA before exceptional items were Rs118.7 crore as against Rs248.4 Crore; EBITDAR before exceptional items were Rs398.4 Crore as against Rs479.4 crore, the statement said.
  
While the industry has been plagued with adverse macroeconomic conditions in the form of rising crude oil prices and weakening rupee, SpiceJet was able to demonstrate a superior revenue performance to overcome this drag and has been able to generate positive cash flow, it said. 
 
SpiceJet's fuel bill rose to Rs 812.40 crore during the quarter, against Rs 534,30 crore in the period year-ago. The company stated to have taken a provision of Rs 63.5 crore as an exceptional item on account of an arbitration award that cited interest payable of Rs 92.5 crore and interest receivable of Rs 29 crore. Further, it said that with this one-time provision, the airline has now fully provided for the maximum amount that may be payable under the arbitration award, it added.
 
The airline is the second domestic carrier to have announced earnings for June quarter so far. Earlier, IndiGo also reported a whopping 97 per cent erosion in net profit to Rs 27.8 crore, from 811.10 crore in Q1 FY18. However, Jet Airways has deferred its June quarter earnings indefinitely amid liquidity crunch.
 
Ajay Singh, Chairman and Managing Director, SpiceJet, said, “SpiceJet has delivered yet another operational profitable quarter despite surging oil prices and a weak rupee. As we start inducting the new fuel-efficient B737 MAX and the Bombardier Q400, we will be able to significantly reduce our overall costs even as we aggressively expand our network both in India and overseas.
 
"We are confident that our operating model is robust to deal with this current unfavorable macroeconomic headwinds,” Singh added.  
 
For 39 months in a row, SpiceJet has flown with the highest load factors in the Indian aviation market and for 38 months in a row the loads have been in excess of 90%, a feat unparalleled globally, it said.
 
SpiceJet has been at the forefront driving the national agenda of UDAN or the regional connectivity scheme. During the quarter, SpiceJet launched four new routes namely Hubli – Chennai, Hubli – Hyderabad, Adampur – Delhi and Kanpur – Delhi. The airline now operates on all sectors allotted under UDAN I and has also begun operations to airports like Hubli, bagged under UDAN II. 
 
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Notably, SpiceJet's stocks ended 0.34 per cent lower at Rs 89.10 apiece on the BSE today, against 0.55 per cent rise in the benchmark.