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SpiceJet reported a second consecutive quarterly loss as regional tensions and fleet shortages hit its business. The carrier recorded a loss of 2.35 billion Indian rupees for the April to June quarter. A year earlier the airline had reported a profit of 1.5 billion rupees.
Revenue dropped to 11.06 billion rupees. That is a fall of about 35 percent from the prior year. The airline said airspace closures and grounded aircraft limited its ability to operate normal schedules.
Pakistani airspace was closed to Indian carriers after the April attack in Occupied Kashmir. Airports in north west India also faced temporary closures. Pakistan refused to be involved in the incidence.
SpiceJet also said that the capacity deficit was exacerbated by the delays in getting planes that had been grounded back into service. The airline has worked to settle disputes with lessors and other creditors. Despite settlements the business has struggled to scale up operations. At the end of March SpiceJet had 25 operational aircraft from a fleet that totals 61 jets.
Falling capacity helped rivals grow. Akasa has overtaken SpiceJet to become the third largest carrier by market share in India. Akasa now holds 5.5 percent of market share. SpiceJet holds roughly 2 percent.
The company reported a recovery in net worth to a positive 4.46 billion rupees for the first quarter. That compares with negative 23.98 billion rupees a year earlier. The company said it will continue efforts to restore capacity and improve liquidity.
During the quarter, the demand of travel on certain routes was compromised. The airline stated that it will liaise with lessors and regulators to reinstate more aircrafts into operation. Additional revisions will be made as SpiceJet publishes it comprehensive financial report and commentary on its management.
