SpiceJet Continues with the Losses Even in December Quarter
Subsequently the losses for most airlines of India have reduced; likewise SpiceJet continues to report losses over December quarter
SpiceJet accounted a total loss Rs. 39.26 crore for the December quarter, much poorer than the loss of Rs. 240 crore accounted by the company in the September quarter. In the year-ago quarter, it had reported a yield of Rs 94.45 crore, says FirstPost.com.
It seems that rising costs have affected the company’s revenues. Fuel expenses, it's main cost constituent, enhanced to 50% a proportion of total sales for the December quarter against 37% in the year-ago quarter.
Neil Mills, Chief Executive Officer of SpiceJet said that “We sustained to uphold our expansion rate in conditions of staff add-ons, passenger traffic and destinations. During the quarter ended December 31, 2011, we were clever enough to appreciate main gains in market share, look up the profits mix and attain noteworthy cost savings aided by a persistent drive to increase operational efficiencies. For that reason, our losses at the PBT rank fell by more than Rs 200 crore in comparison to the instantly foregoing quarter. But for increasing ATF prices and irregular augment in the US Dollar rates the financial presentation could have been much superior this quarter”.
It seems that rising costs have affected the company’s revenues. Fuel expenses, it's main cost constituent, enhanced to 50% a proportion of total sales for the December quarter against 37% in the year-ago quarter.
Neil Mills, Chief Executive Officer of SpiceJet said that “We sustained to uphold our expansion rate in conditions of staff add-ons, passenger traffic and destinations. During the quarter ended December 31, 2011, we were clever enough to appreciate main gains in market share, look up the profits mix and attain noteworthy cost savings aided by a persistent drive to increase operational efficiencies. For that reason, our losses at the PBT rank fell by more than Rs 200 crore in comparison to the instantly foregoing quarter. But for increasing ATF prices and irregular augment in the US Dollar rates the financial presentation could have been much superior this quarter”.
Readers can find the official press release for the same by clicking here: SpiceJet Press Release
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