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SpiceJet reported a loss of INR 838 crore for the quarter. This comes as a result of record high fuel prices, limited capacity and a devaluation of Rs.
The price of a barrel of jet fuel is said to have almost doubled between January and mid-summer 2022.
The loss was reported by the company authorities as the highest ever quarterly loss.
According to a SpiceJet press release, out of the total loss of Rs 838 crore recorded, Rs 260 crore resulted from foreign exchange losses. Also, the number of flights has been increased by 30 percent to overcome the huge losses.
Read more: Banks classify SpiceJet loans as high-risk; The airline denied the “baseless” allegations.
About SpiceJet
SpiceJet, headquartered in Gurgaon, Haryana, is one of India’s leading airlines. It operates 630 flights daily to 64 destinations which include both domestic and international flights. In May 2005, SpiceJet operated its first flight.
Founded in 2004, SpiceJet began operations the following year with operating bases in Delhi and Hyderabad.
Recently, direct flights from Pune to Bangkok were launched by SpiceJet, and the event was inaugurated by the Civil Aviation Minister, Jyotiraditya Scindia.
The reason airplane fuel is so expensive
Various environmental factors all over the world, viz World economy, Resource shortages, wars, and unstable exchange ratesTogether they contribute to the rise in aviation fuel prices.
In addition, tensions in Middle Eastern countries and rising energy demand in China have collectively led to higher fuel prices.
Increasing the price of petrol, diesel and cooking gas is a sensitive issue as it affects the daily life of common people. Hence, the price of aviation fuel is increasing exponentially.
Also, passenger numbers were very low during the pandemic and the fifty percent occupancy rule, linked to SpiceJet’s losses.
SpiceJet’s share has reportedly fallen to 43.7 percent since last year.
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